Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (54042)	2/17/2006 9:02:17 AM
From: GST	Read Replies (4) \| Respond to of 110194

<we DID have a recession in 2001. in the midst of this weakness--the same sort of weakness you are claiming is now going to tank the dollar> What was the US government deficit at that time? What was the trade deficit? The current account deficit? The US added trillions of dollars of additional foreign indebtedness between 2001 and 2006 -- and it is this indebtedness that sits like a 'timebomb' under the dollar. When the economy slows this time, there will be no way to service the foreign debt that is already on the books. There will be no way to pay it back. And there is no reason to believe that our dependence on foreign debt will lessen when the economy slows and the demands on government increase while tax revenues dwindle.