Reply #36: Exactly! [View All]

[Po_d Mainiac]

And this is where major policy failures for the last decade really bite us (US) in the ass.

The FED cannot use lower interest rates as a weapon....That magazine is out of ammo. FED policy fail

We are still highly dependent on foreign energy, and with the emergence of growth in Asia (and their increased use of the automobile) we are now competing with greater numbers for a finite resource. energy policy fail

We no longer produce the items consumed on a day-to-day basis (other than groceries) thanks to offshoring. Unless the rest of the world's economies deflate proportionally to the US, the U$D is going to lose additional purchasing power.trade policy fail

The only asset many people have is real-estate backed. It's also where most debt is concentrated. As the cost of imports (esp. oil) rise, domestic assets will come under even more price distress. national saving rate fail

This list could go on and on and on.........