To: Bert who wrote (46 ) 2/12/2007 9:40:59 PM From: TobagoJack Respond to <<Accordingly, my suggested policy prescriptions run along two separate but synergistic tracks. On one track, there is the path to U.S. fiscal and monetary policy restraint and responsibility. To put it most simply, America must learn to leave within its means and that means balancing the Federal budget and pursuing an interest rate policy consistent with proper price signals. Together, these steps would significantly lessen America’s voracious appetite for Chinese imports and help bring the trade deficit back into balance. This, in turn, would mean that the U.S. would have far less need to rely on China as its central banker, and China would have far fewer surplus greenbacks with which to buy American assets with.[EDIT by J: :0), yes, and 2.9 trillion budget with a tril for military is just the right point of departure; add another 54 tri of unfunded obligation, budget balance is just around the corner] [Edit by J: hit China and China pulls out of USA trade altogether, then, depression here we go, with the most leveraged suffering the worst - the die is cast, there is no turning back, must not look at the harbour we left behind, but the port of destination we are heading to, and make arrangements accordingly, meaning, in a word, GOLD.] [Edit by J: yes, but the author fails to explain one central premise unstated, that being why is the relative rise of China and the weighted downward adjust of USA a bad thing?]>>
