Indeed Mr.Stiglitz

The economy Nobel prize confirmed yesterday Brahmason’s long argued thesis that one of the biggest problems of world economy is the overwhelming excess of liquidity in dollars .

The origin of this is the continuous issue of american debt being inevitably purchassed by Japan , China and others as the only instrument to hold dollar strong and promote an unlimited amount of imports by the U.S.A. of everything produced by countries buying the debt .

The matter has been long agravated by the loss american companies competitiveness because of a dollar artificially strong that made exports easy without needing to be individually competitive .

Recently Brahmason warned that the euro would visit the level of 1 € = 1.20 $ where a huge amount of "captive" investment in dollars woud be freed and that the restrictive measures of chinese authorities advanced also , by Brahmason would cause a boomerang of exceeding dollars to add to the enormous liquidity already existing in the american currency .

If the american administration continues to fuel demand artificially instead of applying austerity measures and promoting direct investments in areas of strong added value duly incentivated fiscally , the problem will be simply out of hand .

Brahmason

Published in: on octubre 20, 2010 at 8:52 am  Deja un comentario  

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