The US is already too big to fail. That’s why foreign investors are still bailing us out. It may not always be that way though.
We all acknowledge the ballooning national debt; we have already reached the tipping point where our debt to GDP ratio now results in a contraction each time the government grows.
What has every scared out of their minds, and will result in more rounds of QE, is the derivitive bubble of $700 trillion.
Our toxic assets, guaranteed by the full faith and credit of Bernake's printing presses and the American taxpayer, were sold across the globe. Leveraging these resulted in more risky loans. It's a financial house of cards built right over a fault line.
When it comes down, it will come down hard. It will start in Europe, there will be a run on banks, and we are back in the 1930's again.
The bigger they are, the harder they fall.
It would be a logical path to pure Globalism with a multitude of tyrants running the really really big show....
” - - - The US is already too big to fail. That’s why foreign investors are still bailing us out. It may not always be that way though. - - - “
I agree. The purpose of this post is to generate a dialog amongst ourselves at FR on the topic of TO BIG TO FAIL.
The Tabloid MSM bought into the idea that somehow the USA was to “ big to fail “ because the USA was “saving” others.
I say bull-pucky! The more the USA spends, the MORE likely the USA will fail.
So much for “Govspeak.”
I like to use the wisdom of Paul Harvey : WHEN YOUR OUTGO EXCEEDS YOUR INCOME, YOUR UPKEEP WILL BE YOUR DOWNFALL, when I balance my personal checkbook.
It is high time that Sheriff of Nottingham Timmy Gee does the same with Obama’s checkbook.