Paul,
That's all right, then. Thanks for the reassurance. Be a good fellow and tell Paul Volcker, though. Poor chap doesn't know very much about these things, and he'll be glad for you to put him right.
John
On Tue, 19 Apr 2005 20:41:18 +0000, <[EMAIL PROTECTED]> wrote:
The US government won't run out of credit. Japan and China will continue to buy dollars because their economies are dependent on US consumers. The dollar will eventually gain strength as interest rates rise. It's cyclical. It's not a big deal. But gnash your teeth and wring your hands if you must.
John Forbes quoted and wrote:
' "Circumstances seem to me as dangerous and intractable as any I can
remember, and I can remember a lot." And: "As a nation we are consuming and
investing about 6 percent more than we are producing." That was Paul
Volcker, former chairman of the Federal Reserve.'
'http://www.washingtonpost.com/wp-dyn/articles/A38725-2005Apr8.html'
'We'll do nothing now, but we'll remember these words in about five years
time. 1929 will seem like a mild hiccup.'
I thought I was the only one who felt uneasy about the current economic
situation in the US. The US government deficit spending / trade imbalance
combination reminds me of a family where the old man is out of work and
they're living on credit cards. It works okay until the credit runs out then
they're in a world of trouble. The US government will eventually run out of
credit. The aftermath will not be pretty.
Tom Reese
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