UPDATE: The talk of the Web is the SNL skit of President Obama at a press conference with the president of China and an interpreter. Didn't post it cause I thought it a bit graphic. However, I'm linking to a story about it which includes the YouTube. It's hilarious. But SNL got it backwards, it may seem like we're gigging the Chinese right now, it's nothing like they'll give it back to us if we don't start getting our economic house in order, sooner rather than later.
THE WAVE OF UNENDING SPENDING AND DEBT THE OBAMA ADMINISTRATION AND CONGRESS is piling on on our country should gravely concern each and every one of us. I don't want to sound like Chicken Little in continuing to sound the alarm, but from my perspective, it looks like the U.S. Treasury et al is playing Russian roulette with all of our lives, especially the those of our progeny. Seems like wanton, wreckless, not to mention unsustainable, fiscal policy to me.
The continuing fall of the U.S. dollar and rise in gold (I was wrong about gold, we're in unchartered territory here and where this gold bubble will end nobody knows) tells me to pray for the best but prepare for much worse.
None of us should be fooled into thinking the economy is improving because of the rising stock market. Nice as it is, it's temporary as money flees the bond and currency markets and takes short-term refuge in stocks.
When the U.S. Treasury issues debt like there's no tomorrow just to make interest payments rather than pay down principle---we better know we're living in a ponzi scheme and house of cards that's going to come tumbling down.
It's not a matter of if but when.
William Goss of Pimco gives us a simple explanation of his take on our country's wreckless spending:
What a good country or a good squirrel should be doing is stashing away nuts for the winter,” said William H. Gross, managing director of the Pimco Group, the giant bond-management firm. “The United States is not only not saving nuts, it’s eating the ones left over from the last winter.”
This is serious, folks. To make matters worse, China owns a great deal of our debt. Which means they are becoming our masters and we enslaved to a communist economy. We can not know the long-term consequences of this. But no matter what any one says, how this administration spins it, there is much adversity ahead for this country and its people.
And no, I don't think that's necessarily a bad thing if we can survive it, though it's gonna be painful, really painful.