peru and strike

Hi People's how are we all?

I'm hoping for a relief rally with the election of the new US president elect but after watching an SBS documentary on the state of affairs and debts in the US looks like unfortunately continued gloom for the world economy and commodities.Fundamentally the house of cards has been built on debt. Its all about debt. Most of the media talk about a shortage of capital. Well this is true, but its only because there isn't enough capital to cover the debt. This crisis was notionally precipitated by the falls in the value of homes in the US and the subsequent negative equity created which rendered the debt instruments associated with these loans worthless. However as I said the main issue is just too much debt in the system relative to the capital. As a further example, look at credit card debt. This is enormous and as opposed to housing there is nothing backing the credit card debt. Its all been spent already. At least a house will always have some value.The only thing supporting CC debt is people's abilty to work and service the debt. As the economy slows further, there will be further credit squeezes. Cash is King and I'm sitting on worthless shares in companies with projects that may never see the light of day especially with the commodities prices in the biggest bear for 30 yrs.

Now the US government is creating more debt as the solution.

I doubt this is the solution. It might be a short term fix but in my view eventually everything needs to be 'paid for'. Hopefully this action will bring the markets gradually and softly back into alignment but I doubt it. Its hard to see how actions designed to keep markets artificially high, be it the Dow or credit instruments can ever be sustained when the underlying issues haven't changed or are getting worse.

Heres an article on Peru, anyone been there, corruption is generally part n parcel of life. beautiful country otherwise friendly too.

From The Australian
PERUVIAN President Alan Garcia is today expected to unveil a new cabinet after a major bribery scandal caused him to accept the resignation of all 17 of the country's ministers at the weekend. The scandal, dubbed "Petrogate", involves members of Mr Garcia's ruling party APRA, who are said to have solicited bribes from a Norwegian petroleum company in exchange for lucrative energy contracts. The scandal unfolded as Peru suffered one of its worst...
One thing amazes me about Peruvians they love Garcia who was a former Leader and deposed for corruption, then there was Fujimori and now we are back to Garcia who was so popular even his single/music did well.

I do not hold Strike and have no position, curious to hear people's views from the 40 cent mark all the same.(Has fallen a lot)