Tuesday, 24 May 2011

You Are What You Owe

How will the U.S. Get a grip on its vast debt, which makes it the world's largest debtor after Japan? Do the leaders of a nation, $14.2 trillion in debt, have the courage to cut health entitlements or social security?
Power that is built on debt is often power that will crumble.
If federal debt is projected to reach 100% of US GDP, the US will be in an even deeper hole than bankrupt Ireland or Portugal.
How much patience does America's largest creditor, China, actually have? A populous and rising power that does not necessarily sympathise with US objectives. One can see why.
Sale of US treasuries seems like a proper and legal retaliation but it would produce dire consequences for the US
Its not too late for the US to get a grip and limit its vulnerability to its foreign rivals.