U.S. Foreign Money Addiction Means Trouble

NEW YORK - It's an addiction. Every day, the United States sucks in more and more of it from abroad, just to keep the nation going. We speak, of course, about foreign money.

At our current rate of trade and budget deficits, foreigners need to purchase $2 billion in dollar-denominated assets each day just to keep the dollar stable, said Axel Merk, who manages $60 million at Merk Investments and runs the Merk Hard Currency Fund.

Over half the national debt is now financed by foreigners, according to Roger Ibbotson, chairman of the financial consulting firm Ibbotson Associates in Chicago and a professor at Yale School of Management. That's been true since 1980, but the difference now, he says, "is the scale of the game."

"I guess everyone wants to keep this game going," Ibbotson said. But if one of the countries we're most dependent on drops out, it could be "like a bank run."

http://news.yahoo.com/s/ap/wall___main

Uncle Bill put in hard time and effort balancing our budget and moving us toward fiscal responsibility as a nation and the Repug bastards undid 8 years of work in the blink of an eye. Just because currency is fiction (no gold standard means its backed only by the word of our government, and we all know what the word of our government is worth) in this country doesn't mean that our economy isn't dependent on its worth. STOP SPENDING MONEY WE DON'T HAVE ON DEATH AND DESTRUCTION!

side question: what about an OIL standard? I know we would have to actually HAVE oil for this to work, but if everything we pump out is going into caves in case we need it, maybe this might work. Looking for points of view on this.

warning come regularly. eventually something's gotta give....

that way China will strangle the US in the consumer market and the finance market and the
Current government does not care to save America.

Msongs
www.msongs.com/chinamart.htm