Sat
Mar
14
2009
Debt expansion
This past week China expressed concern over U.S. debt. I am concerned too. But this is a prelude of what is to come. I am not privy to the back room conversations between the U.S. and China. But for now the U.S. can still manage its finances however it wants while China continues to purchase U.S. Treasuries.
Eventually, and very soon China and other investor’s will dictate U.S. domestic discretionary policy if the U.S. desires to float these deficits.
The G20 meetings will be less about world financial stability and what can be done for developing countries and more into how the U.S. must spend the money the rest of the G20 finances.
The American colonists revolted over such notions. Does today’s U.S. taxpayer have the courage to eventually stand-up to the inept politicians that are making such absurd choices in their name?
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