US Debt

[3Boys]

If you think the $US has sunk far enough.....


http://www.businessweek.com/magazine/why-the-debt-crisis-is-even-worse-than-you-think-07272011.html

[raysusan]

how bad can it go and how will it affect Singapore??

[3Boys]

raysusan:

how bad can it go and how will it affect Singapore??

Exporters will hurt, and at some point MAS will have to react.

More instructive in the article is how they got into this sorry state, predicated on populist policies, decision paralysis and fragmented, entitled citizenry.

[tankee]

Our banks will be hit directly first, then our economy will suffer together with the world’s economy. Another down.

[b2b3m4]

3boys,

This is US, what about China?

http://www.bbc.co.uk/news/business-14024999

And China declaring war with US over their debts.

http://www.nytimes.com/2011/07/30/business/global/global-concern-over-us-debt-ceiling-disagreement.html
http://money.cnn.com/2011/07/29/news/international/china_debt_ceiling/

Whoever still thinks the economy is nice and comfy, you have been warned.

[b2b3m4]

oh my god, this is what someone wrote in CNN, money.


The USA is such a pale shadow of what it used to be at its heights. Now it is going down and down and down. And the Americans are blaming China for its own pitiful self. Americans elect idiots into office based on their sound bites and media showmanship. They want a check and balance divided government. They are getting exactly that: a bunch of politicians who are acting macho, and are totally divided, and nothing meaningful gets done. Americans are getting what they put in. Don't blame other countries for your misfortune. Look in the mirror first. China is not depending on USA. It is USA who is dependent on Chinese loans.

First the disagreement between the Democrats and Republicans leading to almost a government shutdown and then now this default on debts.

Are we heading to something like this?

[tankee]

War and space programs are expensive. I would think a large part of the debt are a result of these.

[3Boys]

tankee:

War and space programs are expensive. I would think a large part of the debt are a result of these.

Tankee, read the article I linked to. They are contributory but not the main cause. Social security, medical programmes are the bigger culprits, abetted by frozen government and populist policies, and entitlement culture.

[raysusan]

So can it be prevent?

How bad can it be?

[3Boys]

raysusan:

So can it be prevent?

How bad can it be?

There is little we can do to help the US govt, except hope and pray that they come to theirsenses and make the hard decisions necessary to turn their finances and economy around. On the other had, it is important we don't make the same mistakes. It would do us well to understand that there are hard choices to be made, that we don't live in a fairy tale, that our small country has little strategic depth, completely dependent on international trade and relations, cannot afford loss making infrastructure. Our finances need to be in order. Its a tough place to be, but we are in it, so we deal with it.