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To: Rockingham

Based on exactly what? None of those entities has any public debt even approaching ours. Not to mention that the leading EU nation has been repatriating and buying gold at quite an accelerated pace. Yellen has her hands full trying to juggle the Fed’s interest rate.

Always count on those aforementioned entities’ hatred of the USA as a factor as well. Never mind who they are all friends with, to a degree (Iran in particular).


22 posted on 03/10/2015 10:50:17 AM PDT by Olog-hai
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To: Olog-hai
China, Russia, and the EU all suffer from major structural and demographic problems and a lack of clear paths for economic and political reform. In contrast, the US has a combination of strengths and potential avenues of reform that provide a basis for guarded optimism.

The Fed and other central banks in developed countries are likely to keep interest rates low in order to ease the financing costs of their public debt, an approach often referred to as financial repression. At least for the near future, our capacity to carry our debt load and our prospects for economic growth matter more than the aggregate size of that debt. Thus the US still has time to make needed reforms.

As for Iran, our resurgent domestic oil and gas production provides the US with greater freedom of action than we have had in decades. In the coming years, China -- yes, China -- seems likely to find itself dependent on Mideast oil to an embarrassing degree. Alternatively, new nuclear energy technologies could redirect the world away from dependence on fossil fuels and to burden the Mideast with having to earn a living.

33 posted on 03/10/2015 8:23:36 PM PDT by Rockingham
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