The US-China Ponzi scheme

[Crewleader]

The US-China Ponzi scheme

By unwittingly tying together their fortunes as they pursued their own interests, the 2 nations have put themselves on an economic path of mutually assured destruction.

By Jon Markman

Imagine becoming so successful at your job that you stack up $2 trillion in income, which you conservatively place in short-term U.S. Treasury bonds for safekeeping.

Now imagine that when you try to cash in those bonds to buy a few things for your kids, the clerk at the bank abruptly shuts her window and tells you to go away.

That is essentially the situation faced by China these days as it wonders whether its plan to manufacture goods for U.S. consumers over the past two decades in exchange for a pile of credit slips was really such a hot idea.

The answer is coming up as a big, fat "uh-oh" as the U.S. deficit and debt obligations balloon to levels never before contemplated, and Beijing is denied requests to buy U.S. and Australian mines and oil properties. And as Beijing leaders talk openly, if obliquely, about their angst, they are unsettling world credit, currency and stock markets, which don't know what to make of the idea that the world's largest Ponzi scheme might be coming to an abrupt end.

http://articles.moneycentral.msn.com/Investing/SuperModels/mad-world-chinas-bind-is-ours-too.aspx?ref=patrick.net

[comtec]

1. this blatantly ignores the fact that it's CHINA who under cut US companies, thus CAUSING this mess!

Using the "oh all i wanted to do was buy my kid a skateboard, and the mean old bank didn't let me" is bullshit.
A better analogy, is you rob the bank, then go back 2 days later shocked that there is no money in the vault!

The OP, not the poster, but the writer, is so full of shit he can start a manurer business!

PURE AMERICAN BULLSHIT!!! CHEAP!

[sendero]

2. This situation reminds me..

... of the Middle East conflict. There are no good guys here.

The Chinese and the Americans are equally culpable in this horrific mess, and both will endure pain to correct it.