The merchant banks crashes are quite a mess, I'm the first to say. But, I'm not seeing capitalism falling any soon. It's just too strong and the masses in western countries just too well feed and tubed for wanting any shake. Just as it was 50 years ago, except it's internet, ipods and cocaine now. It also got globalized in the meanwhile, go figure. I think that sucks mainly because it's it's a systems that is strong with the weak and weak with the strong.
Capitalism is too strong?
Seriously? Is that your opinion in the midst of total economic meltdown?
Is this just your gut feeling - in spite of the facts staring you in the face? Or do you have anything better than sentimental waxing to offer as evidence of the 'strength' of the capitalist system?
I suspect not - you must be one helluv'an optimist.
If, as you apparently theorize, the US is the first to be hit, I can tell you the one thing that I got to understand when living in the US, if they want something done (e.g. an economic recovery), it will be done. They will come out of recession before Europe (we will be too busy figuring out if there will be a country of Europe after all and what to do with all the newcomers).
Yes, I know exactly what you mean - the old 'Can Do' attitude.
This was the attitude taken toward all those borrowers who had no income, and no jobs. Need a mortgage? Sure! Can Do!!
Just sign here.......
They might even stop buying crap from China if needed, when they take a deep breath Americans are a conscientious people, able to produce, build and trade anything. To the contrary I see Europe (western at least) to much sitting on our talking asses to make a visible change. Beside, they have more resources.
Huh. They'll be buying nothing from anyone, because their currency is going to sink like a rock from here on.
Sorry if I don't hold much respect for old Deng. He got to stress the importance of production (working) eh? Well, I've got news for you, others in the world did before him.
He's no hero of mine - I thought you admired his Capitalist Credentials!
About China dumping the dollar, for what in change exactly ? They don't really have an alternative to dollar reserves as long it is the main international currency for trade.
China has the power to make the yuan an alternative reserve currency in world trade by simply denominating all Chinese export in yuan. This sovereign action can be taken unilaterally at any time of China’s choosing. All the State Council has to do is to announce that all Chinese exports must be paid for in yuan, making it illegal for Chinese exporters to accept payment in other currencies. This will set off a frantic scramble by importers of Chinese goods around the world to buy yuan at the State Administration for Foreign Exchange (SAFE) making the yuan a preferred currency with ready market demand. Companies with yuan revenue no longer need to exchange yuan into dollars, as the yuan, backed by the value of Chinese exports, becomes universally accepted in trade. Members of the Organization of Petroleum Exporting Countries (Opec), who import sizable amount of Chinese goods, would accept yuan for payment for their oil.
Then there's also the Euro!!...........
So all in all I'm more worried about how to spend free time when I retire in South America, than anything else. I'm optimist anyway, I fancy fernet and coca that is much cheaper than champagne, and I've some idea already on what to do.
Well good luck to you - and all of us. We're gonna need it.
The US Senate hearing is currently balking at this 700 Billion Bailout - and now there's talk of the Credit Default Swop market being the next iceberg on the horizon. The bailout there will cost....(wait for it)....57 TRILLION Dollars!!!
Where's the money coming from?
Keep thinking happy thoughts and keep BLAMING THE UNIONS.
