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Politics : Moderate Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bucky Katt who wrote (19814)	10/6/2005 10:46:52 PM
From: jttmab	Respond to of 20773

Then won't they loan more money, at higher rates, so they can keep compounding the vig (interest)? That could be a successful tactic if you're trying to manage a small debt. i.,e., if the debt is small and the interest is high enough you can find someone willing to take a risk. But if you're talking about $T in debt, a lot of countries have to have some deep pockets and be willing to take the risk. The proposition that the US debt or economy is too large too be allowed to fail presumes that the US economy is important. Which it is ... today. The US has ~22% of the worlds wealth [GNP]; Japan ~19%. 20 years down the road is that going to be the distribution. What % of GNP is China or India going to hold? As the US continues to export manufacturing and jobs and the trade deficit continues to have an outflow, I think that US GNP as a % of the World's GNP has to fall. The very large majority of trade in the EU is in the EU. I believe that trade with the US is less than 10% of their ecnomomies. It's nice money, but of diminishing value as trade between the EU and Asia increases. jttmab