Uh Oh

Uh Oh


Will this day ever come?


  • gljunket

    Yes, Mr PE-O, it will come due. With T-bill interest virtually zero, no end in sight for debt reduction, the dollar will crash, and we can’t spend our way out of a mess created by over-spending! And you think another Trillion will help?

  • kranky kritter

    Hello, China? Yeah this is the U.S. We’re sending you an aircraft carrier full of freshly printed deflated dollars. Thank you for buying our bonds and treasury bills.

    We look forward to doing more business with you in the future so that you can keep making crap for us to buy at christmas tree shop.


  • ExiledIndependent


  • Duncan

    You know, it’s impolite to take something off a website and manually crop off the photo credit. The people at Pundit Kitchen deserve the credit for coming of with the caption on that image.

  • Trescml

    Some day China may try it, but it risks sinking its own economy by doing so. It is somewhat like economic mutually assured destruction so far as it will send the US in a tailspin but that would likely cause a global depression which would ruin China’s economy.

  • http://thepurplecenter.blogspot.com/2008/12/blog-post.html John Burke

    Never say never but it’s not something that will happen in the foreseeable future. The U.S. market is handily China’s biggest export market, and exports sustain and drive China’s economic growth. Export earnings also provide an enormous subsidy to the other half of the Chinese economy, dominated by state-owned enterprises and farming. Without this subsidy, social discontent in China’s interior, already a bubbling problem, might become hard to manage.

    What’s more, China’s investing of dollars in US Treasuries and private-sector US securities represents for China the most secure way to manage their money. With all our own economic problems, we tend to forget that the US is still an island of relative tranquility in a world of turmoil.

    On top of that, US companies and investors have been making capital investments in China for 25 years — and this flow of capital (as well as knowhow in some businesses) is not something China would want to sacrifice anytime soon.

    Theoretically, if China and other overseas purchasers of US securities were to stop buying and start selling, financing US deficits would get a lot harder. Theoretically, if American banks, businesses, mutual funds and individuals were to sour on Treasuries, that would also make it harder. But there is no reason to believe either will happen. US Treasury obligations have stood every test — or war and depression — for more than a century.

  • gljunket

    If you take comfort that “we’re OK because everybody else is worse” check this out: http://www.bloomberg.com/apps/news?pid=20601109&sid=aCwkfpvso_uo&refer=home

    We will choke on this Keynesian Stimulus attempt at a lifestyle.