p.s. A friend of mine counters, how about the inflation from higher import costs as the dollar falls? Alright, I’ll give you the continue falling of the dollar (initially, until investors, both domestic and foreign, start putting money back into the U.S.). Still, who are we importing the most from? China. Why are we so worried about the quality of Chinese imports? Because we get so much from them. The U.S. is the world’s biggest consumer, and thus China’s biggest customer. China has to export to the U.S. If need be, they’ll adjust their Yuan currency and maybe some trade restrictions as well. Yes, they can do that fast and effectively. Just another benefit of being communist, its unlike the U.S. free markets where there are as many moving pieces as there are large and small business and difficult to turn around on a dime.

This entry was posted on Wednesday, October 31st, 2007 at 12:15 pm and is filed under Banks & Finance, Gov\'t & Utilities, Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.