RomanFinancial

World Equity Markets Take Two Steps Forward and Two Steps Back

I gave you a thumbs down as I am from California, and while your logic is sound in certain areas it lacks logic in general.

First off, you are correct that the stability in our dollar and the international holdings of our dollar have kept the U.S. from bankruptcy. But since the 70's our country has run off a balance, a net deficit that is. It will continue because other countries pour their exports into our homes enticing foolish credit expanders into purchasing said exports. These export countries give Americans credit to purchase these items so their own growth continues to expand. Soon credit gets contracted and our balance gets so high the exports stop flowing...hurting the world. We are essentially the worlds unpaid festering credit card with only export countries to blame for the allowable credit. As soon as export countries learn to stop using the "bloated credit car" (A.K.A: America) for their capital dumping needs the world will balance out until another credit card is found and others dump on them - most likely Brazil or China next.

Second, Europe has severe problems America does not fortunately share - that is very unstable countries like Bulgaria and Greece sharing the currency. These countries have unstable governments that have a risk model included into the EUR currency value, which has to incorporate their possible default. EUR also has a legislative and economic challenge; working together efficiently. EUR has yet to do so and many countries have major disagreements to the direction of EUR, thereby making the EUR more volatile.

Third, Europeans tend to be snide, snobby, stinky, foolish humans. They think they are removed from abject moves of imperialism yet the world lay in utter shit due to their visions of grandeur. They preach nonviolence as they lay under the bicep of Russia's natural gas exports and middle east oil. U.S. takes a different stance - we tend to believe that beating the crap out of the weakest kid in the room will send chills to bullies of equal value to us like china. Also, as a Limey you should be more concerned with the absolute collapse of the pound and your total infrastructure failure. UK is a smoldering heap of burning "rubbish". While here in California we tend to have credit expanding idiots, we will become more humble over the matters and will learn to cease complaining like EUR continues to do...





On Feb 03 01:46 PM OldLimey wrote:

> Of course the Anglo-American media blitz against the EUR will continue.
> After all, any threat to the USD's primacy as the world's reserve
> currency - no matter how distant that threat - has to be addressed
> because that primacy is pretty much all that separates the US from
> outright default on its foreign debt. But could somebody, after they've
> hit the thumb's down of course, explain this to me: why does the
> potential default of Ireland or Greece pose a threat to the viability
> of the EUR when the obvious bankruptcy of California (one of the
> world's top ten economies) is immaterial to the upward march of the
> USD?