You get it?

Princeton

At what point will the scale tip?

As labor rates remain relatively stable, a minor hit, those that are employed can continue to keep up with the manufactured inflation from the central banks.

The goods produced in China require buyers.

China and other Asian entities continue to purchase US debt.

This debt is purchased because the return that it promises.

What point does a debtor nation loose its ability to produce wealth for the creditor nation? And thus the creditor wants to cash in.

For the past several years many buildings in the US have been being purchased by Chinese entities, low flying under the radar and very discreet.

If the barrel of oil price goes to 200 USD that would make something like 5USD/gal (just rough estimating here). This will wipe out more and more individuals from the economy. The cities and plans of much of the geography of the US is not designed for 5USD/Gal specifically when the trend in the US is not to increase wages but to reduce them.

The reports have been for the last several years that wages in the US need to come down 20%. With this pressure and the pressure in rise of fuel and utilities in the standard US home, these will price out many in the first price increase, right out of the market, joining the line in the tent cities of OWS.

Another thought to confirm changes are occurring, MACY’s the department store chain announced this week it is closing one of its stores in a Cleveland suburb. Macys This Cleveland suburb will now become the next victim, and has been, of the encroaching economic devastation blighting areas and leaving a transitional form in its wake. I am no fan of these large retail chains, but the psychological impact upon the residents of this community as institutions, the stores, move may have substantial impact.

The geographical high ground seems to fit well with the economic high ground in this instance. Run for the hills might be the call that is heard.

Post to Twitter http://twitter.com/flakyou