Julio: > That's a loser, Sabri. If the U.S. economy shrinks, > by definition, the values of its real assets shrink > too. First and foremost, the holders of those assets > (e.g. central banks) should "invade" their own countries. > Their best bet is for them to invest in human capital, > the environment, and infrastructure... in their own > countries! That's where the highest payoff is.
No disagreement here! I just wanted to tease David. Moreover, slavery is a thing of the past. I don't want to force my American friends to be slaves because of their debt to us, that is, the outsiders. I forgive their debt. On the other hand, if my choice is restricted to either financial or real assets of the US, I would go for the real assets instead of the financial assets. The lowest value of a financial asset is zero whereas the lowest value of a real asset is always above zero. Further, the holders of the US assets (central banks) already have their own money to "invade" their own countries. What else can they do with the US dollars they own other than recycling them back to the US, given that most, if not all, of them are net exporters to the US? Looks like a vicious cycle to me. Best, Sabri ____________________________________________________________________________________ Everyone is raving about the all-new Yahoo! Mail (http://advision.webevents.yahoo.com/mailbeta/)
