Let's say you are deep into debt and your debt is growing out of control and the only thing you have done to stop this is to print more IOU’s and released many of your criminals out of prison. Your economy is in trouble and there’s no real way out of it.
And your biggest creditor you treat like… well, this…
Is that a good idea?
There have been tires, steal and currency fights between US and China for a while now. So far the co-dependence have hold back the wolfs, but how long will that last? And, as seen over the last couple of months, China is apparently already selling off US treasuries.
I’ve said it all along; the only thing missing in our current mess is more protectionism. Sure there’s been a slight increase and the French are screaming about their farmers as usual, but otherwise it has been pretty quiet on the protectionist front. That’s IF you don’t count the different stimulus thrown at this or that industry.
Globalization as in trade and cross-border agreements is always a good thing. Not only economically, but it also creates agreements, an understanding and a dialog between nations and races otherwise at each other’s throats.
So surely US politicians aren’t that stupid, so crazy and illiterate that they mess it up with China and so, most likely, destroys the dollar?
Well…
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