Re: Re: beginning of the end?

[Barnet Wagman <wagman@xxxxxxxxxxxx>]

> As long as the dollar remains high, it indicates that the inflow of
> external finance is continuing to sustain US consumption.  When the dollar
> drops (as it must, eventually), we are in a new era.

I think Peter has it right.  Until some other part of the world becomes more
attractive to capital, the inflows will keep the US going.  After all, the
money has to go somewhere.  US consumers show no signs of reducing borrowing
(not with such low unemployment), so the dance goes on.

Higher energy prices hurt (or are perceived to hurt) Europe and Japan more
than the US, so oil prices aren't likely to have much effect on capital
flows.  I suspect it will take a major expansion somewhere in the world before
things turn around.

Barney Wagman