Four Really Bad Scenarios: National Security Implications of the Financial Crisis.

Four Really Bad Scenarios: National Security Implications of the Financial Crisis.

www.post-gazette.com

The Chinese own more than $500 billion worth of U.S. Treasury bonds, and billons more in the debt of other U.S. entities such as those held by Freddie Mac and Fannie Mae. And a general sense of mutually assured financial destruction keeps them from wielding that debt like a weapon: if the Chinese dumped U.S. debt on the global market, their own holdings of U.S. debt would decline in value, the U.S. economy would be damaged, ultimately harming the Chinese economy by reducing American ability to buy more Chinese goods.

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Although this guy is an avowed pessimist, his predictions make alot of sense!!

The author, James Rickards, is a regular adviser on financial issues to the office of the Director of National Intelligence, and he lends his financial advice to the national security community.

Rickards calls it the "A to Z" problem: What are the threats that could make the U.S. economy look less like America and more like Zimbabwe? He sees them everywhere - in the Chinese ownership of vast amounts of American debt, in Russia's increased centralization of its economy, in Al Qaeda's long-established fascination with damaging the U.S. economy.

www.post-gazette.com
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