Paul H

Buffett's Latest NYT Op-Ed: The Greenback Effect

Inflation won't take off until American asset reflect prices that are more in line with a bankruptcy liquidation. Make no mistake, the rest of the world is pissed at America and licking their lips as we squirm.

The Chinese people suffered for decades because we kept them out of world trade. They will wait until things are a whole lot cheaper here before they start buying our sky scrapers. I don't look for inflation for some time to come.

Before America can every become a competitor in the world again our wages will have to be closer to what the average Chinese earns.

Credit made us rich and will now make us poor. When 80% of our (pretend) GDP comes from selling stuff back and forth and most of the remainder is government spending projects, we are in a far different world then when we had all the oil and we were the industrial giant of the world. We were barely able to come out of the great Depression with those two big tickets in our pocket. As a betting man, I'm looking for a new country where food grows year around and the masses are al ready poor.