Thomas Friedman didn't piss me off on Meet the Press this weekend.
"So the real debate--we should call this by its real name. It's the, "How much money are we going to borrow from China act to rebuild New Orleans?"
"I think we have--we are now in a position where China has-- they're heading for $1 trillion, OK, of our--in reserves that they're going to be holding, basically. And the leverage that is going to give China over the United States in the coming years, God knows where-- how that's going to play out. Everyone says, well, it's going to be fine. It's going to be fine, Tim, until it isn't, and you're never going to know when that's going to happen."
More and more conservatives are coming out of the closet and acknowledging the precarious economic situation the Bush administration has created. Here is a piece from Paul Craig Roberts who served as Assistant Secretary of the Treasury under Reagan:
"When Asia pulls the plug on the dollar, the US government will find that monetary and fiscal policy are powerless to offset the consequences.
Compared to US budget and trade deficits, terrorists are a minor concern. The greatest danger that the US faces is the dollar's loss of reserve currency role. This would be an impoverishing event, one from which the US would not recover."
"So the real debate--we should call this by its real name. It's the, "How much money are we going to borrow from China act to rebuild New Orleans?"
"I think we have--we are now in a position where China has-- they're heading for $1 trillion, OK, of our--in reserves that they're going to be holding, basically. And the leverage that is going to give China over the United States in the coming years, God knows where-- how that's going to play out. Everyone says, well, it's going to be fine. It's going to be fine, Tim, until it isn't, and you're never going to know when that's going to happen."
More and more conservatives are coming out of the closet and acknowledging the precarious economic situation the Bush administration has created. Here is a piece from Paul Craig Roberts who served as Assistant Secretary of the Treasury under Reagan:
"When Asia pulls the plug on the dollar, the US government will find that monetary and fiscal policy are powerless to offset the consequences.
Compared to US budget and trade deficits, terrorists are a minor concern. The greatest danger that the US faces is the dollar's loss of reserve currency role. This would be an impoverishing event, one from which the US would not recover."
posted by Susan | 11:57 AM
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