U.S. Economic Instability Part III
Published Tuesday, January 22, 2008 by Dan Gainsford | E-mail this post 
And the beat goes on...
The thing about the U.S. economy is it has major implications for the rest of the globe. Since the Federal Reserve has cut interest rates, global markets have plummeted, they're still stable, but what happens if this is only the beginning?
There are many economic analysts out there saying the same thing, it's time to let nature take it's course and there's not much the U.S. Federal Reserve or Government can do about it.
Again perhaps it's a situation of economic warfare. For the players there's always a short-term cost to war, but in the long-run global economies may be trying to relocate consumption away from America in favor of other markets.
For too long the U.S. has been consuming and living the good life off borrowed money, and as a global investor, the increasing debt with little return is making far less sense than ever before, especially in a world of emerging viable global market alternatives. We have to remember that there is always an upside to every down, and as the U.S. economy falters, global investment capital feeds into other markets around the world.
The money always ends up somewhere. Power and influence usually follows.
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