G20 leaders are no longer in control of what will happen.
By Daniel at 25 September, 2009, 7:16 pm
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The global economy grew so much that there are now 2.5 billion people controlling 2/3 of the world’s economy. They aren’t spending. They are saving but, most of them have little, if any debt. They, for the most part, have a different culture when it comes to spending and stay within their means. This is normal as we saw from people who survived the great depression and continued to save and spend frugally.
When these people rose out of poverty, they didn’t forget that poverty and they want to make sure they have enough to keep going in downturns. While that slows growth, it also creates the healthiest type of growth there is. There is less chance of a bubble because of that fear and they have the money to keep spending in a downturn, to reduce the time it takes for recovery.
The global economy and the global use of dollars (there are trillions out there) to buy commodities, food, oil, products we also import, etc. will decide what happens to prices. The lenders to the U.S. government will determine what happens to the dollar, not the FED. Those who follow my comments know about all the things going on that is adding risk to the dollar and not being reported. The latest is large loans in SDR’s that use to be made in dollars, and more buying of IMF Bonds and the media doesn’t even mention this.
A nation in decline doesn’t tell the world what it will or won’t allow. The world tells it what it will have happen to it. Think about it. We have 300 million people with a rapidly declining middle class and rising poverty class and the world has 2.5 billion consumers controlling 2/3 of the global economy. Yet, our government pretends that we are “boss.”
JanPaul
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