The world is now officially becoming unwound. Emerging markets are getting hammered and will continue on this path as the OECD countries are not buying the exports anymore. They were highly leveraged on the expectation of this export growth. The US$ is the dominant currency on this planet. The Euro is under huge pressure from internal disagreement among its members. This trend will coninue for some time. Perhaps years. As global unemployment is rising and will destroy demand for all but essential items.
Deflation is just getting started. See what happens in 2009 as US employment hits 8% and the OECD’s in general go through the roof!!!!
