The market at record highs (this is the longest running cyclical bull in history), record earnings, the economy expanding. So all is blue skies, right? Maybe the message just hasn't been fully received yet. It surely was sent a while back.
If anyone wants to know how to bring this country to it's knees, it's not by military might, terrorist action or any other violent means. It's by crashing the dollar for example, or the stock market, or maybe the entire economy. The US has elegantly maneuvered itself into a soon-to-be impossible position; one where it will be more and more at the mercy of it's foreign creditors with China looming as the largest. That is quite a powerful weapon in China's hands and it should not be underestimated. If it decides to sell off US bonds for example it certainly could cause an economic earthquake, one that the US can hardly afford considering the circumstances. The sub-prime woes have most likely not even reached it's peak yet and with GDP mostly reliant on consumer spending the only question is how long this dance on egg shells can continue. When the money runs out or inflation can't be contained anymore, who'll be left to spend?
There are a lot of players involved in this game called globalization and mostly all of them depend on the US economy to stay afloat in order to keep their own going.
I just can't help but think that the US has submitted itself to becoming a pawn in the quest for global economic world domination.......
Friday, August 10, 2007
Yippie......not
at
1:58 PM
Labels: Bonds, China, Currencies, Economy, Stock Market
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