…and righfully so.
Our nations #1 creditor is getting concerned that we will be ‘printing’ our way out of debt, which of course means all of the dollars they own will become worthless.
From the Telegraph (click to read the entire article) comes this beauty:
Richard Fisher, president of the Dallas Federal Reserve Bank, said: “Senior officials of the Chinese government grilled me about whether or not we are going to monetise the actions of our legislature.”
“I must have been asked about that a hundred times in China. I was asked at every single meeting about our purchases of Treasuries. That seemed to be the principal preoccupation of those that were invested with their surpluses mostly in the United States,” he told the Wall Street Journal.
This comes as no surprise to anyone that read Crash Proof by Peter Schiff or Meltdown by Tom Woods. The problem is all the freaking Keynesian Economists that love and are loved by Washington and the media just can’t figure why this is happening.
Let me put it this way. The Federal Government is one agency that has no obligation to pay any of it’s debt back. By the time creditors come calling, individuals in Washington have either left town or they come up with policies (like they are doing now) that allow them to miraculously purchase US Treasuries. This action of course devalues the dollar, which means the creditor will eventually get paid back, but not with a currency that has any value.
I am sure that this point has not been missed by our Chinese Creditors.
This is probably a really good time to buy gold
Couple this with the hyper-inflation that our devaluing dollar is about to produce and we should start to see some serious economic turmoil.
Gold anyone?