Debt-ridden
Western Governments like the US with “managed economies” and global corporate
cronies have decimated consumers with deflated wages and crowded out free
markets. Up to 40% of the populations in
these welfare states are unemployed, on government welfare and waiting for the
free market to return.
The welfare
costs for these governments is unsustainable.
Liberals have
run out of other peoples’ money and have been printing the money to pay for
their welfare programs. These bloated
welfare states have bloated government expenses to impose unnecessary
regulations for imaginary problems like global warming, political correctness
enforcement and bad parent policing.
Government
stimulus has failed to maintain the bubbles, so they are breaking. Things that have been artificially inflated
are subsiding. Global demand is declining and will finally need to settle back
to actual demand. Prices will decline in
hopes of retaining some demand.
China
Currency
devaluation is the new version of the old tariff. If the Yuan is cheaper against the dollar, it
takes more Yuan to buy something for a dollar. Conversely, if you have dollars,
you can get more Yuan for the dollar
Those
US companies who buy things from China will find their prices cheaper. Those
who buy from Indonesia already have cheap the prices China is trying to meet.
Those
US companies who sell things to China will find their prices are higher than
local prices. They may sell less and make less.
If the Chinese buy smartphones, they may buy cheaper or none at
all. Remember, we’ve been selling
smartphones for a decade and that bubble will deflate.
Banks
will continue to suffer. Big Zombie
Banks who are leveraged 70:1 and who made the wrong bets in the hedge funds
will need to cut their losses. Commodities should stay low or go lower. Foreign
owned Treasury Bills should continue to decline if they need to invest in their
own countries.
The
failure of socialist policies should ignite some reforms.
Norb Leahy,
Dunwoody GA Tea Party Leader
No comments:
Post a Comment