[lit-ideas] Re: Englehardt, Cold Warrior in a Strange Land

  • From: "John McCreery" <john.mccreery@xxxxxxxxx>
  • To: lit-ideas@xxxxxxxxxxxxx
  • Date: Sun, 26 Mar 2006 11:26:02 +0900

On 3/26/06, Lawrence Helm <lawrencehelm@xxxxxxxxxxxx> wrote:
>
>
>
> I fail to see foreign investment in our bonds as problem.

Normally, it isn't a problem. So long as investors believe in the full
faith and credit of the United States government, that is. But as the
red ink in our balance of trade account increases and our national
debt spirals out of control, it is not surprising that a recurrent
story in the international financial press concerns the rumor that
this or that country is shifting at least part of its foreign exchange
holdings out of dollars into something else.

During the second half of the 20th century we were able to play the
game of take their money and buy their goods because, at the end of
the day, for most economies we were the consumer of last resort, the
place they could always sell their stuff. Now, with middle class
populations in India, China, and Europe as large or larger than the
whole of the US population, both exporters and investors have more
options. The global elite who don't give a damn where they produce,
sell and invest as long as their ROI is high are and will make out
just fine. For the average American, white as well as blue collar, the
prospect isn't nearly so rosey.



--
John McCreery
The Word Works, Ltd.
55-13-202 Miyagaya, Nishi-ku
Yokohama 220-0006, JAPAN
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