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

To: rich evans who wrote (90248)	1/7/2008 6:47:20 PM
From: GST	Respond to of 110194

Put another way, so long as we can find somebody willing to loan/invest $2 billion a day we can go as we are, and assuming that our debts do not continue to spiral upward -- of course these loans and investments earn interest/dividends and that is tacked onto the bill each year. We are rapidly moving into uncharted territory where we borrow money to pay debt on the loans already outstanding from past years. If you knew somebody who maxed out their credit cards and got new cards each year to pay interest on the cards from prior years you would not likely say "good plan, that is what keeps your finances so healthy". At a national level we are going in that direction. In the past few years the value of the dollar has plunged by over 40% against many other currencies -- and would have plunged against others had their governments not been willing to prop up the dollar. A 40% drop in the global purchasing power of the currency is a sign that this pattern of spending more than we earn is getting a little old.