Larry Edelson Looks at the Weak U.S. Dollar in New Article in Money and Markets

Larry Edelson takes a closer look at the falling dollar and how it is hurting the U.S. economy. In this issue of Money and Markets, Mr. Edelson examines the emerging economies and compares them to the U.S. economy.

Jupiter, Fla. (PRWEB) December 1, 2007 -- Larry Edelson takes a closer look at the falling dollar and how it is hurting the U.S. economy. Mr. Edelson examines the emerging economies and compares them to the U.S. economy.

The buck has lost nearly 37% of its purchasing power in just five years, and the dollar's bear market could go on for a lot longer. On an international level this means that the value of U.S. gross domestic product has been cut in value by more than a third.

Meanwhile, the U.S. is facing its worst real estate market since the Great Depression.

Housing starts are down 47% from their peak. Residential construction now accounts for 4.4% of total GDP, down from 6.3% at its peak in 2005. And for the first time ever, the national median home price has declined.

Relative to their incomes, household debt as a percent of disposable income in the U.S. is now 130%. This means that the typical American household has $1.30 in debt for every one dollar of income. In the early 1990s they had 80 cents of debt for every dollar of income.

Meanwhile, emerging economies are booming and breaking free of the U.S. Emerging economies have not completely broken away from the U.S., but they are now more independent of the U.S. than they have ever been before.

Some facts supporting that belief:

•    First, emerging economies are no longer financially dependent on developed nations. Instead of running current account deficits as they did in the late 1990s, nearly all emerging countries now have current account surpluses.

•    Second, with the exception of China's yuan, currencies of most emerging economies now freely float against the dollar, giving them much more flexibility to develop policies to overcome any speed bumps that come along.

•    Third, the new consumer class in emerging economies is developing very rapidly, and in many countries, way ahead of even the most optimistic forecasts.

"To be sure, there are still plenty of problems in these countries, and plenty of hurdles for them to overcome. But in general, they will continue to outgrow the U.S. by a factor of four or five to one. And despite occasional pullbacks, even violent, deep declines like we've seen lately in China, the upside is very much intact and has a very long way to go," Larry Edelson states.

To read this issue online, please visit:

http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1225

About LARRY EDELSON & MONEY AND MARKETS     

With nearly three decades of experience in precious metals and natural resources markets, Larry Edelson has played a pivotal role in training Weiss Research staff and in guiding Weiss Research's customers to prudent investments in the sector. His Real Wealth Report, Gold Trader Hotline and Energy Options Alert provide a continuing education on natural resource investments, with recommendations aiming for both profit and risk management. His team of technical analysts helps enhance the timing of investment recommendations with the aim of continually improving the performance results for investors.

Mr. Edelson is also a regular contributor to the daily e-letter, Money and Markets. Recognized as an expert in precious metals and natural resources, he is often called upon by the media for his investing views. Mr. Edelson has been featured on Bloomberg, Reuters, and CNBC as well as The New York Times, New York Sun, and Marketwatch.com

Mr. Edelson holds a B.A. degree from Columbia University.    

Money and Markets (www.moneyandmarkets.com) is a free daily investment newsletter from Dr. Martin Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Weiss Research, Inc. is located in Jupiter, Florida. For more information about our editors, or to set up an interview, please contact Jennifer Moran at 561-627-3300 or visit www.moneyandmarkets.com.

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