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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (118370)	6/6/2005 12:54:18 AM
From: kumar	Respond to of 793731

US govt bonds are viewed as risk free investments. So is the US$. My mom in India has a stash of US$ - she pays someone to convert Indian rupees to US$.

To: Ilaine who wrote (118370)	6/6/2005 1:09:15 AM
From: Snowshoe	Respond to of 793731

>>China apparently has $500 billion in bad bank loans<< That's why China can't repeg it's currency yet... they have to clean up the banking system first.

To: Ilaine who wrote (118370)	6/6/2005 8:02:37 PM
From: carranza2	Read Replies (2) \| Respond to of 793731

And people are arguing that US government bonds are bad investments? Yeah, right. At one point in history, the British pound was the world's strongest currency. No longer. The same is slowly and surely happening to us. If you think that our increasing and enormous budget and trade deficits coupled with our low savings rate means our currency will remain the leader, you are mistaken. We are headed for an economic perfect storm of epic proportions. Whether it will happen in 3 or 5 years, who knows, but if things don't change and change drastically, it will hit. There is still time to change and to prepare, but there is no political will. And no leadership. We are going to be left with a heap of rusting SUVs, debt, and foreclosures as the owners of overvalued houses are unable to meet their mortgage payments on the interest free and adjustable mortgages. The mother of real estate bubbles will turn into the mother of real estate crashes. It will snuff out our creditor-financed consumption like a match in a storm. I haven't even begun to think about the political ramifications, but the GOP will be in trouble for its failure to lead and for its mishandling of the budget. This is being ignored despite the fact that many reputable economists have discussed the matter. They must feel like Henry Niman warning about avian flu--unheard voices in the wilderness.