Monday, November 05, 2012
More of the same, or reverse the catastrophic spiral?
(Note to readers: I do know how to make paragraphs. Blogger is not allowing me to do so. I have asked them to correct the problem). Spengler writes in Asia Times Online: "During the past year, the US Treasury borrowed $1.2 trillion. Half of that amount was lent to America by foreigners. Mitt Romney asks whether it's worth borrowing money from China to fund each line item in the federal budget, but China was a net seller of $165 billion of Treasury securities during the past 12 months. Japan was the largest buyer, at $220 billion. A second term for Barack Obama promises more of the same: more dependency, more entitlement spending, more federal debt, and more dependency on foreign lenders - until the rest of the world wearies of American fecklessness and finds a better use for its money. Can America reverse the damage? Probably, if it acts now. More of the same is a prescription for a catastrophic spiral into national decline." Read much more here: http://www.atimes.com/atimes/Front_Page/NK06Aa02.html