Full Thread: The Fed
View Single Post
Old November 25th, 2009 #59
Alex Linder
Administrator
 
Join Date: Nov 2003
Posts: 45,756
Blog Entries: 34
Default

[Gary North]

The Treasury will either renege on its debt or else the government will pass laws cutting expected benefits. Perhaps a combination of these will be the most politically acceptable approach.

There is no way that the Treasury's debt will be repaid. Everyone knows this, including Chinese central bankers and politicians. When Saturday Night Live opens with a skit on Obama's visit to China, where Obama keeps telling President Jintao that China will get its money back, and President Jintao asks him how, exactly, and Obama cannot say, we know that the world knows that America's debt is not going to be repaid. The live SNL audience gets it. The audience at home gets it. Everyone gets it. China is not going to get its money back. While the skit utilizes some crude humor, the message is clear. The economic data in the skit are factually accurate. When the details of America's foreign trade disaster can be turned into an SNL skit, the word is out.

Nothing changes. Nothing will change until China and other Asian nations cease playing kick the can.

http://www.lewrockwell.com/north/north787.html