Thursday, August 16, 2007

U.S. Government Debt - Like a shopper at the mall on a credit card rampage.

This is frightening. The United States has been funding our overseas adventures in Iraq and Afghanistan by borrowing money from foreign countries. The majority of this debt is held by China. This past week there was some saber rattling by the Chinese about selling off their U.S. notes. This would bankrupt the U.S. instantly. I completely understand using debt responsibly but I am concerned that Mr. Bush's team may have made America more vulnerable to an economic catastrophe by leveraging our solid credit history (the dollar has been the most stable currency since World War II) in their strange attempt to restructure the political structure of the Mid-East. Read more in the Financial Times HERE.

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