If there ever was an important Xi to place in an economic model.....
It would definitely be labeled....
Chinese/Japanese US Bond Buying/Selling
Here is what the US needs to be thinking about....
The probability of Chinese/Japanese not buying US debt....
.........................................................
15 to 20% interest rates are in the wings for the US....
US will have to resort to short term rolling of high yield short term bills...
Now think about what this does....
Think about the "crowding out' of corporate borrowing needs....
Now think about what VAT will do to US savings....
http://www.ritholtz.com/blog/2009/09/julian-robertson/
It is not "if" but "when"....
It would definitely be labeled....
Chinese/Japanese US Bond Buying/Selling
Here is what the US needs to be thinking about....
The probability of Chinese/Japanese not buying US debt....
.........................................................
15 to 20% interest rates are in the wings for the US....
US will have to resort to short term rolling of high yield short term bills...
Now think about what this does....
Think about the "crowding out' of corporate borrowing needs....
Now think about what VAT will do to US savings....
http://www.ritholtz.com/blog/2009/09/julian-robertson/
It is not "if" but "when"....