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Originally Posted by Butterfly Instead of printing money, the US is printing credit cards, much more efficient.
Thailand is doing the same. |
I remember years ago when people here got up in arms over the Japanese going on a buying spree and buying up all kinds of American real estate. Yet, we allow China to finance our debt and very few people are raising their eyebrows about that.
What a vicious circle. Corporations here farm out cheap labor to China, thus, increasing demand of raw materials overseas which drives up commodity prices here (look at copper and oil as examples). We then import the goods, the consumer loses out again due to poor quality and (still) high prices while the corporations making a killing all while the Chinese are giving us loans to buy their stuff in the first place.
Imagine if you will the perfect economic storm: deflationary real estate, high oil prices, and China's demand that we pay them back for all the T-bills they own.