Cliff wrote in news:4h10e1dro8n9g08eojpu7q6scknsulfico@
Hmmm. The Cinese are going to take a 2%+ hit on hundreds of billions of
dollars just to make everyone happy. I'm sure they'll keep on loaning us
money to buy their cheap crap. What other choice do they have? Europe is an
economic black hole, and they aren't likely to open their markets up to
cheap Cinese goods.
Cliff wrote in news:h070e19ojd6ca560l2ojtnvkgu4filh9g6@
Another clueless hand wringer with no grasp of economics.
He has been writing this drivel for almost thirty years. Has he ever been
right about anything?
You would think if you just guessed you'd be right half of the time.
Let's be realists here. Blaming or not blaming any political group
should only be done after arriving at good understanding of what is
What is going on is that the United states is running irresponsible,
banana republic style finances, with relatively large budget deficits,
low interest rates, and very large foreign trade deficits.
Partly, these consequences are already apparent in the rise of various
real costs (fuel, housing, etc), which are probably not by accident,
not included in the "core rate of inflation". The present system for
calculating CPI is very creative and excludes pretty much every
component that shows substantial price inflation. So it hides reality
to some extent.
Ultimately, banana republic style finances will lead to banana republic
style consequences. Lenders cannot continue lending money to the US on
current terms indefinitely to finance these deficits, so something
will have to change to restore trade equilibrium.
Given the difficulty of reducing deficits in the present situation (a
hopeless expensive war, plundering of the budget to pay off various
constituencies etc), I cannot see anything other that fall of the
value of the dollar as being able to address the disequilibrium.
Consequently, I and my family bought a sensible quantity of euros back
I am not terribly interested in who is to blame, although it is
impossible not to recognize that the present administration made an
unforced decision to become involved in an unneeded, expensive foreign
misadventure, as well as reduce taxes to those who supported it
financially. Something that is not affordable to the society in the
present deficit environment.
I would not support a contention that one political party in the US is
substantially less inclined towards thievery.
If you don't recognize who's responsible for the mess, then
there's no hope of fixing it. This is like saying, "oh well,
one of the kids crashed the family car. Let's not point
fingers and fix blame."
We *need* that car. We *need* to find out why they can't
drive, and make sure they don't get behind the wheel until
they prove they're skilled and responsible. And until
they've paid off the damage they've done.
Otherwise they're just going to keep right on destroying the
Basically we have a bunch of out-of-control drunk teenagers
running our country's fiscal matters.
Im sure any one of the specimens would make him saner than he is now.
"Considering the events of recent years,
the world has a long way to go to regain
its credibility and reputation with the US."