Quote:
Originally Posted by Ethersync
The problems in Europe are there own. They have enough to sink themselves without our help. Short term and long term Europe is fucked.
China's problem is EVERYONE stopped buying their shit and they have a massive population of people needing jobs.
Bernanke has said he can just print up dollars to buy treasuries if they do not sell on the open market. The market has clearly dared him to try it if you look at the 50% increase in the 10 year. Some speculate he may already be doing this a little...
If we can't sell our bonds our deficit spending is over 
Best case (for us) China begins to put less in our bonds. They will not keep buying at the same levels. Japan is not around to help now. Japan is FUCKED.
Expect another stock market crash this year orchestrated by the government to push money into treasuries... |
China is already preparing for us to stop buying their goods. Their standard of living has a lot of room for growth and they know that and have planned it that way. While we buy less their own people buy more and their standard of living goes up and ours goes down.