Monday, November 10, 2008

Too Big

Another gem. This time in the RGE Monitor.

“Every person in the (rich) United States has over the past 10 years or so borrowed about $4,000 from someone in the (poor) People’s Republic of China.”

In the end, the U.S. will be considered too big to fail. Holders of U.S. debt will suck it up and accept a much depreciated dollar fresh off the printing press and will thank us for repaying them.

And then turn around and buy rupees.

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