the world of financials looks entirely different if one takes a step back and stops viewing incomes / costs from a US dollar centric point of view !!!!
(snip)"For years America has convinced the emerging market countries that their prosperity is a function of our consumption. It is argued that their export oriented economies would falter if not for the insatiable American willingness to consume (a “virtue” that is assumed to be uniquely American). As the dollar falls into the abyss, this myth will be shattered.
My forecast is that over the next two to three years the U.S. Dollar index will fall to 40; half of its current value. As this happens, much of America’s economic power will be transferred abroad. The chart below approximates current per capita U.S. dollar GDP for thirty nations, including the United States, listed in descending order.
Luxembourg 91,926.63
Norway 76,447.78
Ireland 57,163.07
Switzerland 54,466.77
Iceland 53,532.47
United States 46,085.15
Sweden 44,454.36
Netherlands 42,762.96
United Kingdom 41,959.85
Canada 41,347.87
Australia 37,981.52
France 37,416.55
Germany 36,779.14
United Arab Emirates 36,180.87
Japan 36,021.22
Singapore 32,082.02
Spain 31,726.55
New Zealand 24,511.95
Greece 24,030.41
Israel 20,510.55
Portugal 19,287.51
Saudi Arabia 16,612.16
Poland 9,214.27
Chile 8,335.70
Russia 8,183.02
Mexico 7,755.69
Argentina 6,548.80
Venezuela 6,393.99
Brazil 5,518.21
Peru 3,328.55
A 50% decline in the value of the dollar will simultaneously increase interest rates, consumer prices and unemployment in the United States, while causing stock and real estate prices to fall. Consumption, which accounts for better than 70% of U.S. GDP, should collapse as a result, producing a significant recession. My forecast is that U.S. GDP will contract by at least 20%. (The Fed may seek to mitigate the nominal decline with expansive monetary policy, but such moves will only result in an even greater contraction in real GDP.)
Assuming a 50% decline in the value of the dollar and a 20% fall in U.S. GDP, the above chart would look something like this:
Luxembourg 183,853.25
Norway 152,895.56
Ireland 114,326.14
Switzerland 108,933.54
Iceland 107,064.94
Sweden 88,908.73
Netherlands 85,525.93
United Kingdom 83,919.70
Canada 82,695.74
Australia 75,963.04
France 74,833.10
Germany 73,558.27
United Arab Emirates 72,361.73
Japan 72,042.44
Singapore 64,164.05
Spain 63,453.11
New Zealand 49,023.91
Greece 48,060.83
Israel 41,021.10
Portugal 38,575.02
United States 36,868.12
Saudi Arabia 33,224.32
Chile 16,671.40
Russia 16,366.03
Mexico 15,511.38
Argentina 13,097.61
Venezuela 12,787.97
Brazil 11,036.41
Peru 6,657.09
Obviously, these projections are very rough. Not all foreign currencies will rise in step and not all foreign GDPs will remain constant at today’s levels in local currencies. However it is the concept that is important. Notice how America falls from 6th place to 21st. America’s per capita GDP falls from 58% of Luxemburg’s, the top nation on the list, to a mere 20%. America’s per capita GDP falls from 14 times that of Peru, the lowest nation on the list, to only 5.6 times."(snip)



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