[lbo-talk] anxious

Dennis Redmond dredmond at efn.org
Tue Sep 6 18:49:00 PDT 2005


Cristobal Senior wrote:


> the growth of consumer's debt to
> galactic proportion, especially via he housing bubble and low interest
> rates which in turn comes courtesy the Asians' CBs massive buying
> of UST bonds.

Not just East Asia -- Europe is also a major financier.


> Finance is the only growth industry in the US

Retailing, construction, health care, higher education, and business services have continued to grow, though sluggishly.


> 2 - even the most hysterical cheerleader can't avoid
> facing the somber fact that increasing oil prices (an of other
> commodities} will deliver a severe surge in inflation.

But there's ferocious competition in most industrial sectors, which keeps prices down, and the new metropoles are far more energy-efficient and less exposed to the vagaries of raw materials prices than they were in the 1970s.

-- DRR



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