Take your deflation and shove it...

[phirang]

The world is more than crummy FIRE:

Is Dubai a bubble economy? Of course it is, but even when the bubble bursts the accomplishments and dynamic commercial skills concentrated in Dubai will persist and form a solid foundation for enabling future growth. My guess is that as the US and UK financial-based economies implode from debt-deflation, and their military influence in the Gulf recedes, Dubai will strengthen its network of trade and finance deeper into former Eastern Europe, Asia and Africa. Dubai will facilitate the investment capital flows that allow all of these diverse geographies to develop according to their internal political, economic and resource constraints.

http://londonbanker.blogspot.com/

[jk]

Re: Take your deflation and shove it...

The world is more than crummy FIRE:

that's the problem with this last bubble. at least the tech bubble left us with a lot of fiber optic cable and some computer equipment. this time we've got a lot of overly large homes located too far from jobs.

[Wild Style]

Re: Take your deflation and shove it...

that's the problem with this last bubble. at least the tech bubble left us with a lot of fiber optic cable and some computer equipment. this time we've got a lot of overly large homes located too far from jobs.

I am from Brooklyn and now live in Florida. In Brooklyn, I see tons of newly renovated brownstones in the "less desirable" neighborhoods. Granted, when things get worse in NYC and the yuppies go back to Nebraska or wherever they came from, they will leave behind all this stuff. The original inhabitants will now have some quality places to live. Same in Fort Lauderdale and Miami. The city cores have seen a LOT of development. So, all isn't completely lost, in the end we will have a LOT of affordable housing in and around city cores. At least in NYC and S. Florida.

[GRG55]

Re: Take your deflation and shove it...

that's the problem with this last bubble. at least the tech bubble left us with a lot of fiber optic cable and some computer equipment. this time we've got a lot of overly large homes located too far from jobs.

That's still better than what the foreign buyers of US mortgage debt ended up with...

[phirang]

Re: Take your deflation and shove it...

That's still better than what the foreign buyers of US mortgage debt ended up with...

The US is bluffing the Chinese on the bonar... what will make the Chinese call it?

[kingcopper]

Re: Take your deflation and shove it...

The US is bluffing the Chinese on the bonar... what will make the Chinese call it?

I actually disagree with this concept. I subscribe to the beliefs that the Chinese don't give a rat's ass about out bonar as long as 1.6billion souls have dollar a day jobs and their economy continues to grow briskly. See, I believe the Chinese govt. is buying time so that 10 years from now when they have the infrastucture in place, they will then call our bluff, pull the plug on the bonar and crush what's left of our neoconomy. Then, the Chinese will be the only superpower:mad:

[orion]

Re: Take your deflation and shove it...

My thoughts exactly. As a dictatorship, autocracy, whatever, I think this is their plan and they could do it (let the US keep borrowing even with a weaker currency), just keep the party going. I hope cheap peak oil and other commodities might put a lid on this plan and slow down the world giving us time to reorganize and come to our senses.

[c1ue]

Re: Take your deflation and shove it...

I subscribe to the beliefs that the Chinese don't give a rat's ass about out bonar as long as 1.6billion souls have dollar a day jobs and their economy continues to grow briskly. See, I believe the Chinese govt. is buying time so that 10 years from now when they have the infrastucture in place, they will then call our bluff, pull the plug on the bonar and crush what's left of our neoconomy. Then, the Chinese will be the only superpower

KC,

I'd agree as well except for one thing: China needs money. Not dollars necessarily per se, but capital to continue its infrastructure buildup (also formerly known as modernization).

If the US strongly devalues the dollar, it is very possible that the purchasing power China gets in return for selling cheap goods to the US (via a RMB/$ rate lower than it "should" be) will be lost in purchasing commodities such as food and oil.

If on the other hand, the RMB continues to strengthen against the dollar, then China's competitiveness both in the US and against other nations like Vietnam will suffer - thus reducing its trade gains in purchasing power.

This is why there have been several instances now where Chinese officials have explicitly warned the US not to let dollar depreciation and/or Non-agency bonds fall too far - because otherwise China will have to make a Solomonic decision to either lose its existing accumulated dollar purchasing power or lose much of its US based trade gains.

So far China has been content to lose a little of both.

[Rajiv]

Re: Take your deflation and shove it...

What about this little item?

Kuwait to deport 800,000 foreign workers

Kuwait is planning to deport 800,000 foreign workers over the next three years, Kuwaiti Arabic language daily Al-Watan reported Thursday.

The expatriates are to be sent home for committing crimes, being trouble-makers, importing infectious diseases and being marginal laborers, the newspaper said without identifying the source of the information.

Foreigners accounted for almost 2.4 million of Kuwait's population of 3.4 million at the end of 2007.

So 1/3 of their "guest" workers are "trouble makers" and "disease carriers?"