|
|
|
|||
|
| ||||
| ||||
| ||||
|
|
|
The sliding economy has been able to confuse Fed again to cause massive fall in stock prices
History repeats itself. It did it again. The stealth recession started in 2000. In 2003 it changed into stagflation with special growth for the wealthy by inheritance. In 2006 March things changed again. The stagflation is now slowly changing into sector deflation. The debt burden will eventually bring full fledged deflation and possibly depression when 25% underemployment converts into 25% unemployment.
The scenario will more horrific in China and India. Chinese stock market like the currency is totally controlled by a 100 Chinese oligarchs sitting in Communist politburo and the Red Army commanding positions. The Chinese stock market does not tell what is going in China. In India however, things are different. The stock market has crashed and is going for 30 to 50% price decline. Indian stock market in the next five years can retreat back to 2000 level – a 90% fall. What happened in 1929-33 in America is going to repeat in India and China. Eventually over the next twenty years, India and China will become great powers but before that they will have to go through some time as they realize dependence on Western markets is not a great idea.
The economy has confused Fed again. Fed thinks of inflation as stagflation gets changed into deflation. Fed refuses to lower rates knowing very well that the auto and real estate markets are in deep trouble.
SMART LIVING & INVST. ARTICLES
|
|
| Click here to get ad specs and place your ad or Click here to contact the advertisement department |
Send Letters to the Editor
|