[bsrsharma]

Gas prices increase when measured in dollars. If you measure in euros, pounds, swiss francs, yen, etc… they haven't

Oil was below $40 per bbl in 2003; $120 in 2008

Euro was between USD 1.1 to 1.2 in 2003; $1.6 in 2008

Obviously, US $ depreciation is only part of the story.

More interestingly, I think, at least part of $ devaluation is DUE to increase in trade deficits due to rise in oil prices. These two have been mutually reinforcing each other's instability – leading to a vicious cycle.

[bsrsharma]

The article doesn’t seem to drill down to the root causes clearly enough:

1. The (misguided) Iraq war has caused skyrocketing oil prices, in turn causing commodity inflation. This makes Americans particularly poorer and commodity producers richer. The war induced oil price increase from probably around $40 to $120 is the largest transfer of wealth from US to the rest of the world. May be more than the cost of the war itself. As a secondary effect, this devalues US $ that makes Americans feel poorer due to inflation.

2. The (Greenspan induced) cheap loans – housing bubble mania has caused a great waste of capital due to misdirected use of wealth (to build unnecessary mansions). This loss of capital is now causing near or real bankruptcies, rising unemployment, inflation, devaluation of $ etc., making Americans poorer.

So, it is more a case of US screwing up on a grand scale as a nation than a big “Rise of the Rest” story.

Tell me: who cares about the tallest building, largest mall/casino/ferris wheel etc.,?

[bsrsharma]

The article doesn’t seem to drill down to the root causes clearly enough:

1. The (misguided) Iraq war has caused skyrocketing oil prices, in turn causing commodity inflation. This makes Americans particularly poorer and commodity producers richer. The war induced oil price increase from probably around $40 to $120 is the largest transfer of wealth from US to the rest of the world. May be more than the cost of the war itself. As a secondary effect, this devalues US $ that makes Americans feel poorer due to inflation.

2. The (Greenspan induced) cheap loans – housing bubble mania has caused a great waste of capital due to misdirected use of wealth (to build unnecessary mansions). This loss of capital is now causing near or real bankruptcies, rising unemployment, inflation, devaluation of $ etc., making Americans poorer.

So, it is more a case of US screwing up on a grand scale as a nation than a big “Rise of the Rest” story.

Tell me: who cares about the tallest building, largest mall/casino/ferris wheel etc.,?

[bsrsharma]

The article doesn’t seem to drill down to the root causes clearly enough:

1. The (misguided) Iraq war has caused skyrocketing oil prices, in turn causing commodity inflation. This makes Americans particularly poorer and commodity producers richer. The war induced oil price increase from probably around $40 to $120 is the largest transfer of wealth from US to the rest of the world. May be more than the cost of the war itself. As a secondary effect, this devalues US $ that makes Americans feel poorer due to inflation.

2. The (Greenspan induced) cheap loans – housing bubble mania has caused a great waste of capital due to misdirected use of wealth (to build unnecessary mansions). This loss of capital is now causing near or real bankruptcies, rising unemployment, inflation, devaluation of $ etc., making Americans poorer.

So, it is more a case of US screwing up on a grand scale as a nation than a big “Rise of the Rest” story.

Tell me: who cares about the tallest building, largest mall/casino/ferris wheel etc.,?

[bsrsharma]

The article doesn’t seem to drill down to the root causes clearly enough:

1. The (misguided) Iraq war has caused skyrocketing oil prices, in turn causing commodity inflation. This makes Americans particularly poorer and commodity producers richer. The war induced oil price increase from probably around $40 to $120 is the largest transfer of wealth from US to the rest of the world. May be more than the cost of the war itself. As a secondary effect, this devalues US $ that makes Americans feel poorer due to inflation.

2. The (Greenspan induced) cheap loans – housing bubble mania has caused a great waste of capital due to misdirected use of wealth (to build unnecessary mansions). This loss of capital is now causing near or real bankruptcies, rising unemployment, inflation, devaluation of $ etc., making Americans poorer.

So, it is more a case of US screwing up on a grand scale as a nation than a big “Rise of the Rest” story.

Tell me: who cares about the tallest building, largest mall/casino/ferris wheel etc.,?

[bsrsharma]

The article doesn’t seem to drill down to the root causes clearly enough:

1. The (misguided) Iraq war has caused skyrocketing oil prices, in turn causing commodity inflation. This makes Americans particularly poorer and commodity producers richer. The war induced oil price increase from probably around $40 to $120 is the largest transfer of wealth from US to the rest of the world. May be more than the cost of the war itself. As a secondary effect, this devalues US $ that makes Americans feel poorer due to inflation.

2. The (Greenspan induced) cheap loans – housing bubble mania has caused a great waste of capital due to misdirected use of wealth (to build unnecessary mansions). This loss of capital is now causing near or real bankruptcies, rising unemployment, inflation, devaluation of $ etc., making Americans poorer.

So, it is more a case of US screwing up on a grand scale as a nation than a big “Rise of the Rest” story.

Tell me: who cares about the tallest building, largest mall/casino/ferris wheel etc.,?

[bsrsharma]

If you ever want a poster boy for your hypothesis, it can be Casey Serin (of the infamous iamfacingforeclosure.com), originally from Uzbekistan.

http://en.wikipedia.org/wiki/Casey_Serin

[bsrsharma]

If you ever want a poster boy for your hypothesis, it can be Casey Serin (of the infamous iamfacingforeclosure.com), originally from Uzbekistan.

http://en.wikipedia.org/wiki/Casey_Serin

[bsrsharma]

If you ever want a poster boy for your hypothesis, it can be Casey Serin (of the infamous iamfacingforeclosure.com), originally from Uzbekistan.

http://en.wikipedia.org/wiki/Casey_Serin

[bsrsharma]

If you ever want a poster boy for your hypothesis, it can be Casey Serin (of the infamous iamfacingforeclosure.com), originally from Uzbekistan.

http://en.wikipedia.org/wiki/Casey_Serin

[bsrsharma]

If you ever want a poster boy for your hypothesis, it can be Casey Serin (of the infamous iamfacingforeclosure.com), originally from Uzbekistan.

http://en.wikipedia.org/wiki/Casey_Serin

[bsrsharma]

Thai, Vietnamese, Korean or Indian

How do you know they employ all legals? I have seen many Mexican looking people working at Asian restuarants.

 

[bsrsharma]

Thai, Vietnamese, Korean or Indian

How do you know they employ all legals? I have seen many Mexican looking people working at Asian restuarants.

 

[bsrsharma]

Thai, Vietnamese, Korean or Indian

How do you know they employ all legals? I have seen many Mexican looking people working at Asian restuarants.

 

[bsrsharma]

Thai, Vietnamese, Korean or Indian

How do you know they employ all legals? I have seen many Mexican looking people working at Asian restuarants.

 

[Author]

Posts