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

To: mishedlo who wrote (66435)	7/19/2006 10:38:01 PM
From: shades	Respond to of 110194

China's reserves overtook Japan's as the world's largest this year and are set to top US$1 trillion, Moody's Investors Service said last week. Good article Mish - what advantage do we as a country possess over china? Superior military might and technology (if clinton didn't sell it all) resource rich land - tons of space to grow our population (something they are running out of eh?) If the USA inflates the money supply but gives most of it to the americans in the borders - how does japan or china compete with us here in purchasing assets here? You already see other nations nationalizing assets - so much for global property rights. This was the arguement in the 30's - the farmers wanted the rich politicians to default on our foreign debts eh? But the rich politicians decided to kick the farmers to the curb to make thier rich international banking friends happy - and they did it to their peoples to make our rich elites happy. So the poor in both countries get the boot while the rich in both countries get platinum golf clubs - hehe. So foreign companies are buying US assets - with inflation will they get back in the future nearly what they are giving up in the present? In the war on terror - what is to stop the politicos from taking these guys money and then a little while later in the interests of national defense taking back the assets? Possession is 9/10's the law eh? The british learned that in the 1840's funding our roads back then and then eating it when we defaulted on the payments. Mosler and Chromatic have said debt leaving the borders is the bad thing - it will cause all the hurt feelings in the future when it is defaulted on. Either by outright means or germany type inflation. It also gets the government out of building and maintaining toll roads and bridges into private hands that are likely to do the job better and cheaper. That is unarguably a good thing, especially in light of building bridges to nowhere in Alaska. Sad to keep us from taking overdoses of morphine we have to turn our medical supplies over to a third party. Still roads to nowhere does make me take pause that perhaps its time to hand the cookie jar over to someone who is more about efficiency and profit than waste and entitlement.