That will put the S&P @ about 1600 in 2012. Though there is already approximately double digit inflation in the U.S., and salaries are lagging inflation, at least people will feel better when they check their 401K balances.
And what major world ccies might those be then? The mighty Euro? The unstoppable Sterling? The pegged Yuan? The wonderful housing-bubblicious Aussie? Moreover, would't the 30% drop in the Dollar exchange rate have the obvious implications for the imports of consumer goods.
I would not harp on the word major. perhaps the swiss currency will become more overvalued. perhaps the yuan will become more flexible. perhaps the dollar will depreciate against the mexican peso and other asian countries. perhaps the russian ruble will be ascendant. it is a race to the bottom for the dollar and euro with all the attendant chaos and pain. it is fiat currency that is reaching a tipping point.
Well, quite clearly the Swiss have had all the overvaluation of the Swiss Franc they're prepared to tolerate. The yuan, yes, perhaps it will become more flexible. Perhaps it will happen before pigs fly, 'cause it sure as hell doesn't seem to be happening at the moment, what with all the issues China finds itself facing. And no EM currency (MXN, INR, IDR, MYR, whatever) is likely to perform in an environment where the US, and, by extension, the whole world, is going to hell in a hand basket. All I am trying to say is that it's folly to blithely state that the USD is just going to depreciate 30% against world ccies (major or otherwise) in a scenario that these people describe. It's a lot easier for me to imagine that the USD depreciates 30% by losing its reserve ccy status in a situation where all is well and the world is able to rebalance (yuan and other EM ccies float, etc). That's my Z$2c, anyways...
umm issues that China is facing? Care to elaborate? It's like me saying Martinghoul has issues and everyone knows it without elaborating your post sound too immature even for net
Inflation, unemployment, riots, pollution, you know, the usual stuff.. not to mention that they have a lot of dollars that they want to get rid of...
Question. Anyone know the demographic target of this news letter? Who is the author talking to? Might shed some light on motivation and the point of the article.
Well, seeing as how this is a discussion on a trading website, in an Economics forum, I naturally assumed that the participants would be following the recent news, developments, etc. Clearly, you're one participant in this discussion that isn't on top of stuff. Would you like me to point you to some places where you can find info, analysis, etc?
give a man fish you feed him for a day teach him how to fish you feed him for a lifetime. teach him how to use search. unfortunately the poster is another example of the feely good and give me american educational system.