Posted by CC2 on August 06, 2011 at 18:29:42:
In Reply to: book re the S and P downgrade of the US posted by JimHK on August 06, 2011 at 14:55:20:
: I don't think the public has as yet realized how significant the S&P downgrade of the US is. The US dollar has long been the stable currency that most of the countries of the world hold (by buying US bonds). That goes a long way toward keeping the US economy rolling because it means the US can print as much money as it needs.
You failed to mention what the US does with all that money it borrowed from China. It was used to bail out the gluttonous (but stupid) US banks that caused the recent economic collapse, and bail out the US auto companies that build their cars outside of the US using non-US citizens. Therefore, it did nothing toward helping the US economy. It is worth noting here that there was no bailout of Toyota even though they build their cars in the US using US citizen employees - that would have actually helped the US economy.