posted on Mar, 15 2009 @ 07:57 AM
In the bloomberg article:
“The U.S. Treasury market remains the deepest and most liquid market in the world,” Treasury spokeswoman Heather Wong said in an e-mailed
statement. “President Obama is committed to taking the steps necessary to restore growth and put this country on the path of fiscal
sustainability, including cutting the long-term deficit in half over the next four years.”
This is the rub. To maintain a good economy, there must be (MUST BE) growth. That says "debt I create now will be repaid by higher growth and
eventual pay-back". It's like you buy a new car when you get a raise. You "hope" to keep your job in order to make the car payments. Hope - let
me see who's presidential campaign used that word??
If the US GDP cannot grow but stays flat, the debt is going to have more risk, lower ratings. I don't mind a good economy that grows at 0.2%
annually (maybe equal to the population growth). However, a 3% growth in GDP or higher is hard. Hard unless we have buyers of our creations. where
are *our* factories? Not in the US - they are in lower-wage countries. How do we export our services industries at a growing rate when our services
are the highest-cost services in the world? Not sure on that one.
I say - this China debt thing will be huge. Huge in that the only way we can grow monies to pay them back is to devaluate the dollar (which we have
heard is the "plan" of the Bilderberg group). That screws China in the end, they get pissed, they throw their weight around and who knows what
happens next. Obama and the administration will say "China: I hope we can pay you back sometime soon..." I say "I hope China doesn't
Hillary and Barak saying "things will be all right" to China is just extending the dilusion.
[edit on 15-3-2009 by bonaire]