On Fri, 10 Mar 2006 19:41:48 -0500, Cliff
wrote:
On Fri, 10 Mar 2006 18:12:16 -0600, F. George McDuffee
wrote:
There is about to be a grand conjunction when the governmental
deficits at all levels meet the cumulative balance of payments
trade deficit.
===========================
The trade deficits (we just set another new record, right?) ARE
added national debts.
As are all those trilions of offshore dollars .....
Just sell & ship more wheat & older machine tools (as scrap metal), right?
-----------------------------------------
This is one of several possible outcomes -- all bad.

Consider what happens when the holders of our public and private
debt realize they are about to be stiffed big time, e.g. the port
management fiasco. Anything that is of value and portable will
be purchased with the trillions of dollars we have so blithely
exported. Operationally this is hyper-inflation where the supply
of goods and services evaporates while the "money supply" grows
geometrically. Actually when you define money as a "medium of
exchange and a measure/store of value" its gone too.

It is at this point Harry Homeowner will discover who was
actually supplying the money for his home equity loan, and who
now owns the house....

All together now "Don't cry for me Argentina" ....
(See how the international banks behaved there when the ship hit
the sand a few years back."

Unka George