Massive deficit spending and money supply creation leading to inflation SCREWS ALL SAVERS OF WHOM THE CHICOMS AND JAPANESE ARE THE MOST PROMINENT.
I think the Chicoms are engaging in economic warfare by vowing to renege on losing commodity trades.
I wonder if this all leads to a trade war? Smoot-Hawley and the trade war in Europe were major factors in the Great Depression. Could we see the same scenario unfold?
I think it is already happening... I remember reading a thread on FR yesterday about United States banning charter flights from Canadian NHL teams because the unions are feeling left out...
If China reneges on its financial obligations, why couldn’t the US renege on its obligations? This wouldn’t only lead to a trade war, but a break down in trade all around the world. So much for the “just in time inventory” if that happens.
Good point. I hadn’t considered the effect of inflation on the bonds that foreign governments (especially China) have purchased.
Perhaps it’s time to get the kids’ savings bonds and cash them in to get precious metals, huh?