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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: NOW who wrote (3915)12/28/2003 9:23:44 AM
From: Rarebird  Read Replies (1) of 110194
 
<not if we default on em...g>

There is a huge geo-economic problem which should be self- evident by now. With 25% to more than 50% of all of Asian capital plant now export dependent, they will only keep spinning out the flow of economic goods as long as the main importers are able to buy them.

No importer is bigger than the US, but the US now stands in a position where it cannot keep buying if the Asians don't keep lending. Japan is still lending, but China is now turning its economy. It is now only a matter of time before China STOPS lending to the US.

I know it has been Japan's Central Bank and China's Central Bank which have been standing as the main global funders of the US in larger terms and, therefore, the financial enablers of the Bush Administration's imperialist military moves.

This cannot last in any full global geo-political terms. It cannot last because the way in which the US is spending the savings it sources from Japan and China are not in the fundamental national interests of either nation.

The US has placed itself militarily dead center in the main oil region of the world. Both Japan and China depend on this oil.
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