Sunday, 25 November 2007

The End of The World already happened...

...According to this interesting read, 'Countdown to a Meltdown'. Posted today on Metafilter, it's from a couple of years ago, but most of it rings pretty true, although a bit doom-mongering. After all, who is going to buy all those Chinese made things if the yanks go down the tubes? Certainly not the Indians who won't have any jobs as no-one will be calling their call centres. The catalyst for this meltdown though is not the credit crunch caused by sub-prime mortgages but a spike in oil prices caused by Chavez striking a deal with China to supply oil in return for a re-rating of their currency.

Got everyone talking on net. Some other more current articles start to bring home the level of pain the yanks might end up going through - 'Mortage Failures' and 'What happens Next?'

I'm of the belief that the correction in currency is already well on its way. I've switched to buying small treats on the internet to American sites. Amazon US and Threadless (t-shirts) have very attractive price points compared to similar sites in the UK. Once more people cotton on to this sort of thing, American exports will increase and their massive balance of payments deficit will slowly correct. Might take a wee while though.