"If the Chinese and Japanese stop buying our bonds, we could easily see [inflation] go to 15 to 20 percent," he said. "It's not a question of the economy. It's a question of who will lend us the money if they don't. Imagine us getting ourselves in a situation where we're totally dependent on those two countries. It's crazy."Mash down here for more observations from Mr. Robertson.(snip)
"We're in for some real rough sledding," he said. "I really do think the recession is at least temporarily over. But we haven't addressed so many of our problems and we are borrowing so much money that we can't possibly pay it back, unless the Chinese and Japanese buy our bonds."
I'm still wog-boggled about the idea of basing a national economy, even partially, on the selling of that country's debt.
How did that happen?
Nothing good can possibly come of it.
1 comments:
After reading the Headlines today about the income gap widening I thought I would add to this thread:
First off the income gap is widening because we have a massive invasion of illegal workers into the work force and that is driving wages down, thus those who run a business can pay lower then inflation wage increases then they would have normally. Whoa you say how does farm workers and construction workers and landscaping effect others who are technical etc.? It's simple because there are more bodies to take those positions, more people are instead moving into other fields and thus flooding those markets also with workers, thus for instance air conditioner work sees guys showing up fresh out of school with a logo on their truck competing with other business owners who are more established. This suppresses wages across the board except for the upper levels of management where those wages are out of control do to the opposite supply and demand.
As for your post on our debt consider this:
As long as both parties continue down the path of selling this nation out, the peril will continue until we ourselves achieve third world status!
Trade deficits act like a balloon that is leaking. Simply put the money in the economy ends up overseas and thus we have a cash shortage in this country that is fixed by more deficit spending to blow the balloon up again.
This cycle will continue until our currency is worthless and we, as the German's did after WWI will need wheel barrels of money to buy a single loaf of bread!
People need to study Germany after WWI, we are heading that way and it will sow the seed for the rise of a leader that will promise salvation just as Hitler did!
Post a Comment