The things that will destroy America are prosperity-at-any-price, peace-at-any-price, safety-first instead of duty-first, the love of soft living, and the get-rich-quick theory of life. – Theodore Roosevelt
The only thing saving our ass right now is the fact that it is in the best interest of long term treasury bond holders (and the rest of the world for that matter) for the US to get out of there financial bind. Sell bonds and not buying bonds will hurt a recovery. However I think the rest of the world wants to start cutting us off this is why short terms bonds are now much more in demand than the 30 bonds. Once the credit crunch recession/depression is over however we will have a real tough decision. It must by now be clear that getting into debt and having huge trade deficits have really screwed us. The problem is what do you do? If we put some sort of tariffs on Chinese imports they have the power to crush our economy by flooding the market with treasury bonds. It's a tough deal.
How Long Can the US-Dollar Defy the Law of Gravity
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Posted - 07/12/2009 : 13:23:14
