--- In FairfieldLife@yahoogroups.com <mailto:FairfieldLife@yahoogroups.com> , "guyfawkes91" <[EMAIL PROTECTED]> wrote: > > >> > >is the housing bubble burst,which started earlier than it might have > > otherwise have due to oil speculation > >> > House prices started a downward trend in 2006, just before JH claimed > the invincibility assembly would put the stock market on a permanent > upswing. By then it was pretty clear that the market would tank as the > housing bubble slowly deflated. > > The reason for the bubble is simply that the dollar is the world's > reserve currency even though the US economy and psychology is > decoupled from what's going on in the rest of the world.>>
Those are very good points. I was going to talk about the psycological effects (in the major trading partners ) of the Neocon pre-emptive illegal warmongering in an earlier post. That is part of the point. Every country in the world is watching how a country that spends more on its military than all the others combined, is going to fare at this junture in history. << Therefore money was flowing into investments in the the US which would have been > better invested elsewhere.>> I think if a trillion dollars had not been written off for Iraq, then some of that creditworthiness of the US could have been put into creating new jobs and whole new industries in green technologies. <<When people realized their investments > weren't worth what they thought they were the money stopped coming in. > This sort of thing happens all the time it's just that because the > size of the imbalance is so big it takes a big crisis to start > correcting it. > > Already the Gulf states are getting ready to start their own currency > which isn't going to be pegged to the dollar. When that happens it'll > start a rush of countries loosening their dollar pegs and it might > mean that oil will be priced in whatever the Gulf currency is called. > Eventually the dollar won't be the world's reserve currency. >> Exactly. > > As US dominance declines there will be lots of earthquakes like this, > people have to come to terms with the fact that all the growth is > happening in countries with lots of young people, highly educated > young people at that. The US is dangerously close to electing someone > who represents the lack of education and intelligence of the > population. If that happens the decline of the US as a world power > will be accelerated. > > The market turbulence is just a small part of it.>> One positive is that the European economy is bigger than the US economy, and as far as I know Europe is not in debt. Europe being a major trading partner of the US will bouy the US up again eventually. >
