Friday, January 23, 2009

WSJ.com - Opinion: The World Won't Buy Unlimited U.S. Debt

Peter Schiff writes a great article that asks the question: for how much longer will the rest of the world finance our trillion dollar deficits?When the rest of the world (principally China and Japan) decides that they have better things to with their money, then the gig will be up. US interest rates will spike and the dollar will collapse.But there are a lot of economists telling the junkie to shoot some more dope. Paul Krugman in particular thinks that we need to run a 2.5 trillion dollar deficit this year. He and the rest of the Keynesian idiots don't seem to understand that sooner or later other countries will stop financing our debt. Read the whole article please and comment.

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