Read this article, we could be eating grass for breakfast and chewing leather for lunch if China decides to pull the plug.
Bloomberg.com: Opinion
Bloomberg.com: Opinion
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That's because we know a joke when we see it.
Keep up the, ahem.... "good work".![]()
And we thought 1BIGG1 was gone![]()
The situation the author describes has been going on for years. China has even more to lose than we do in this scenario.
But nothing lasts forever. Especially not inflationary monetrary policy. One way or another, it is designed to crash now and again.
China will hurt, but this is a problem particular to the USA. If the dollar looses so much value it is supplanted by another currency as the world standard, the ramifications would be mortal.
Don't forget, China has a diverse and prosperous manufacturing base of epic dimensions. What has the USA got left except for it's "service" indutries?
And yet the Euro is the more stable currency (and backed by a prosperous population of twice the USA), the mid east and Russia have all the energy and the USA outsourced any industry that actually made anything years ago.
I think you're economy is mostly paper and what we are about to witness is the biggest deleveraging of the USD in history.
But that's just my opinion.
Well, my aim is to inform and entertain, thanks for the vote of confidence. Ta-ta, for now.
OK. I still think the EEC is stronger and the USA will be cut adrift into a hyperinflationary tragedy.
I can't see where the real money is coming from for all this. Bernanke himself has admitted that the only thing he has left is a printing press. This alone is enough to make me run for the hills.
And if Obama thinks he can walk in with some kind of "New Deal" policy which will work, then it's all over.
What that country needs right now is less government, more people saving money instead of hocking themelves with hopes and dreams as collateral and to start making stuff again instead of packing your manufacturing off to (insert 3rd world country here).
I think things will look a little different when they do get going again.
I didn't say better or worse. Just different.