DEADBEAT COUNTRY (ALMOST)…..USA

DEADBEAT COUNTRY (ALMOST)…..USA

What if you had a banker or another creditor who did not really like you, but you owed him $1.3 TRILLION dollars?

What if you however, want or desperately need more and more money to be borrowed from this person?

Under those circumstances, could you say and do anything you want and risk getting this person angry?

But, what if this person had run out of money to lend you any more money to support your apparently lavish lifestyle which obviously requires more and more borrowings from him?

WELL FOLKS THE LENDER IN THIS CASE IS CHINA AND JAPAN, AND THE NEEDY DEADBEAT IS THE GOOD OLE USA.

The USA needs money to support its “lifestyle”, but its biggest creditors are running out of money to buy TREASURY securities, since their economies are not generating the cash surpluses any more, which could then be used to buy more of the securities.
Is that simple to understand?

What if then, instead of buying more debt, the creditors simply say that they need the money back?

Think about that, what happens when you do not have the money to pay back YOUR creditor….your FICO score suffers, and you pay exorbitant interest rates!

Then another thing happens….as consumers and businesses of every type try to borrow money they will be competing for the available money with the government!
So far, it does not sound like a recovery is coming, does it?