Foreign Debt

The global financial and debt crises is related to the model of economic growth we have adopted, particularly over the past 30 years or so. Look back over the history of those years; real estate bubble after real estate bubble, the dot-com bubbles, the currency speculation and commodities bubbles. They all collapsed because they had to, because there was no productive substantial reality backing them up. Both the Industrial Revolution and finance capital are based on a race to the bottom of human prosperity, where even the big winners are wiped out because the bursting bubbles takes everything down with it. Bubbles always pop before it reaches infinite growth, as it must. Politicians and central bankers huddle together and try to patch up the system. Their idea is to inflate their way to prosperity through excess money printing (euphemistically called "quantitative easing" by the FED). Inflation of the money supply ultimately destroys wealth. Finance capital in particular is... Read more

Thanks to Bush's spending habits,China pretty much has us by the balls right now.

This ties in with the Federal Deficit and the soon-to-collapse dollar. Since we're printing up our Monopoly Money at a frantic pace, it is sure to become worth less and less, and when it gets to the point where another currency looks more attractive as the world's reserve currency (such as the yuan), you can kiss your bucks goodbye.

This isn’t the first time the US has been in debt and most likely not the last. America and other countries borrow money from each other all the time in order to maintain trade alliances. Unfortunately, lax regulations of the past few years have allowed Wall Street to go overboard. However, I do believe that through innovation, reinvention, and reinvestment in our country the US can reverse the trend of being a debtor nation and become the international creditor it once was.