The purpose in this series of posts is to debunk a bunch of myths that mainstream media and mainstream economics are throwing out there.
Number 1....Comparisons between the US and 1990s Japan.
First of all, intentional weakening of the dollar will not help America like it did Japan as many in the mainstream are trying to misguidely lead you.
Japan was an export based economy with a net savings rate among its people. America is an import based economy with a negative savings rate. In case you havn't noticed, we are in exactly the opposite position as Japan prior to the systematic devaluation of its currency with a ZIRP policy.
If, and I emphasize IF, our dollar devalues as the pundits are leading you to believe, our imports would get so expensive that Americans will have a very hard time just achievinig basic needs, less having any discretionary income. In order for our economy to convert to an export based economy, our relative wages would have to drop dramatically....and I mean DRAMATICALLY in order to effectively compete the the emerging economies of Asia and India.
It is clear to me right now that the direction we are going is DEFLATION, but the pundits would like you to think the opposite. It has gotten so bad that bank accounts are effectively yielding zero.
What we face ahead is very very difficult times. As I say, don't depair.....prepare. It will not just be America...but the whole world. Look forward to a rising dollar, falling commodity prices, and a falling stock market if this trend stays on course.
Clearly, Alstry is not in the main stream, but swimming with the crowd has never been my beach.