One more wrinkle:

The biggest creditor is China and that’s a big part of this equation that’s not being talked about.  If America was not in such deep debt, we could deal with this problem much more effectively -- but China has essentially told the U.S. that we make good on all the debt that they're holding, which is nearly a trillion dollars, or they're going to stop lending us money.  To show that they’re serious, they’ve already stopped lending us money and if we can't borrow money every day, literally hundreds of billions of dollars, we default on the loans that are coming due.

So, this is a house of cards that the government has created and my biggest frustration with this whole mess is that it is being blamed on free enterprise, capitalism, and corporate greed -- when in fact, this is a good example of what happens when the government gets involved in the private sector.

Posted by: Old Grouch in Linkage at 18:29:29 GMT | No Comments | Add Comment
Post contains 173 words, total size 1 kb.