dre Posted January 7, 2011 Report Posted January 7, 2011 (edited) That's what was said five years ago....they are still snapping up Treasuries at auction. Reality is inconvenient that way. Nobody with a brain said that would happen 5 years ago. The US is too huge of a market and the same countries buying those bonds are running huge trade surpluses with the US. At this particular time it makes sense for them to keep bailing the US out so that they can keep Americans consuming their goods. I think theres definately a risk of rapid devaluation... and when you look at other countries that have found themselves in that position you can see that once the shit hit the fan the house of cards came tumbling down pretty fast. But I think were a couple of decades away from that. America is still "too big to fail", and countries carrying US debt know it. It would be extremely stupid for a country like China to take a position that weakened either the US or its currency at this time. Who the hell are they gonna sell stuff too if the US fails? Edited January 7, 2011 by dre Quote I question things because I am human. And call no one my father who's no closer than a stranger
sharkman Posted January 8, 2011 Report Posted January 8, 2011 Listen, I don't think Peter Schiff has very good news for the US in 2011. The economy will falter and seriously shrink. We in Canada should prepare ourselves financially for such an occurrence just in case. Quote
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