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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (161201)	4/28/2005 5:15:43 PM
From: neolib	Read Replies (1) \| Respond to of 281500

I agree that the US is seen as a safe place to invest. But I see the overall picture like this: The wealthiest guy in a little village likes his house & grounds. He keeps remodeling & expanding the house, and sprucing up the landscaping. He employs a significant number of fellow villagers as tradesmen or workers on these projects. He also has some business of his own, which produces products the other villagers buy. By the by, the wealthy guy starts handing out IOU's as payment, and the villagers, although they like being employed, and like seeing the IOU's swell in their closet, start to wonder if the guy can actually pay. So far he has. And he shows not decrease in consumption or desire for more goods & services. Furthermore, there are more and more suppliers of the products this guy sells, so the IOU's don't get returned to him as much as before anyway. He's never defaulted, he's nice upright & honest. He pays a fair price for the products & services he buys, all in those IOU slips, which so far are as good as gold. But might he be digging a deep hole? And if so, what is the exit strategy for those sitting on a pile of IOU's. That is the question.