malleni wrote:Elliott wave researches have also something to say.
Ten billion dollars per day.
A staggering figure, but what could it possibly be?
The amount of money spent between the TARP, TALF and other alphabet soup of bailout programs? No.
The amount needed to spend the proposed stimulus package? No.
The amount of asset value lost everyday in the stock market in 2008? No.
The amount of money being printed daily at the U.S. Treasury?
Still cold, so I’ll tell you. In 2009, the U.S. will post a current account deficit of more the $1 trillion, and in order to finance this deficit, more than ten billion dollars every working day must flow into this country.
Like every castle in the sand, like any house built of straw – or, in terms of Elliott wave analysis, like any third-wave advance – such a capital structure is not sustainable. "Stimulus package" or not, the U.S. cannot attract enough foreign capital to sustain a $1 trillion trade deficit, a $1 trillion current account deficit, net foreign debt of $15 trillion and unfunded federal mandates of $54 trillion.
According to the CIA's World Factbook, the U.S. right now is at the very bottom of the Current Account Balance list, below Haiti and Cuba. And it's no coincidence that the three countries at the top of the list – China, Germany and Japan – have made significant structural reforms to their economies to an export-based model.
In contrast, the consumption-based model of the United States has placed us at the bottom. To put it simply, we consume more than we produce, and we literally ship billions out in national wealth every year for non-durable goods.
http://www.elliottwave.com/freeupdates/ ... ollar.aspx
Excellent info and an interesting topic.
I say that this is one of those structural changes that we WILL make over the next decade or two. The trade deficit is rapidly coming into line and after unemployment builds to levels we haven't seen in decades we will once again come to appreciate the value of a job, as people did coming out if the depression.
This next decade will all be about mass restructuring like we haven't seen in a very long time. To assume that America is not up to the task is to make a big, big mistake...I hope....