Tuesday, September 08, 2009

The China $yndrome

This article is worth reading.

China's financial reserves are more than $2 trillion, the world's largest -- while the US has entered a state of crippling debt -- and its solution to crippling debt is -- much more debt.

Money quote: "The US spends tomorrow's money today," he said. "We Chinese spend today's money tomorrow. That's why we have this financial crisis."

Judicious use of debt can fuel prosperity; injudicious debt leads to ruin. Right now, the US is on the road to ruin.

And that's the way the need-a-get-out-of-debt-free-card Ball bounces.

Photo: Reuters

No comments:

"... nothing intellectually compelling or challenging.. bald assertions coupled to superstition... woefully pathetic"