WhoShotJR wrote:What we have is an income to expense ratio problem.
So what you're saying is that the US is hemorrhaging money and need a transfusion but aren't getting it?
raptor wrote:BTW Fiat currencies are irrelevant in this situation. Yes I know... this allows the unlimited printing of money but the problem here is the level of debt.
And Fiat currencies can't be counted on... (moot point imo)
raptor wrote:The US may actually in a perverse way be helped by this crisis. Recent reports are that foreigners are buying up US real estate, the US t-bill yield is dropping indicating huge inflows of foreign capital to the USD.
Now do not get me wrong the US has way too much debt and out of control spending. That said with its borrowing costs are at historic lows this may be an opportunity for the US to lock in low interest rates and deal with our own fiscal problems. Do not write off the USD quite yet.
But the USD may be getting an upshot from foreigners from the same countries in crisis because of the money they are starting to pour into the US's pockets.
Do I have that correct?
(Please be patients... I am very interested in this subject but am still learning, so in a sense, all of you are teaching me. Knowledge is power, curb ignorance)