As a country, the US is speeding to the economic event horizon… we don’t know exactly where it is (at least that’s what they tell us sheople), or when we will reach it, but sooner than later, countries like China and Russia are going to pull the plug on loaning us money. It’s mathematics. And it’s reality. They simply cannot continue to loan money to a country that will never be able to pay them back.
China, Russia and the rest must know this.
Is Washington hoping that the world will think like they did and believe that we are simply too big to fail? Will the Chinese and Russians never call due their loans and stop the flow of money because if they do it will plunge the world into a depression worse than the Great Depression or any other global economic crisis?
I am concerned that the US Govt. will never be able to dig us out of the incredible debt hole we find ourselves in. And like the Wall St. banks, they believe that even though the Chinese, Russians, and any other country dumb enough to loan us money know they are pumping money into a bottomless pit, they wont stop for fear of a global economic catastrophe.
I don’t know if they look at things the same way we do.
Personally, I think the Wall St. banks that were going to fail should have been left to fail. That is, after all, what the free market and capitalism is all about, isn’t it? They got too greedy… they made bad investments. Like any other company or industry, they should have paid the ultimate price… liquidation. There would have been some survivors, and those banks would get stronger as a result. But because of political connections and considerations, deals were made to save the banks and screw the taxpayer. Thank god we still have all of those financial geniuses employed on Wall St.!
So, what say you all? I read (I looked, and couldn’t find a cite, sorry), that China and Russia actually met last year to discuss their loaning policies toward the US, but decided not to pull the plug completely because of the fear of what might happen. Is this true? I don’t know. But it sure sounds plausible.
Indications are that we are headed for a double dip recession. Housing and fuel prices are going to take hits again this summer. More unemployment, more people defaulting on loans, more foreclosures. I don’t know if all this will happen, but I see a real possibility here, especially if we continue to borrow money faster than we can pay it back. Maybe the Chinese will accept a reverse mortgage on Alaska? Or that’s more Russian, we’ll give the Chinese San Francisco and the west coast.
Anyone have any thoughts? Are things as bad as I think, or are things better than I think? Will another ME war (say with Iran) help delay the inevitable, or is the inevitable going to pull us all down? Can we all imagine runs on the banks, and no cash to be available? The FDIC is a bluff. There isn’t that kind of money anywhere to pay all depositors. It’s just insured for that much by the federal govt, who isn’t the best credit bet right now.
Have any of you gone to your bank already and taken your money out and put the hard cash into a safe? How about buying gold and silver and platinum? Not mutual funds, but the actual metals? Anyone take any other proactive steps to prepare for the worse?
Or is all this just BS?