De Graaf

American Austerity Is About to Begin

The political problem (for creditor nations and Central Banks that fund the US deficit) when they stop subsidizing America's exponential growth dream is too disturbing for them.

Remember what happened to France when they didn't suppor the war? There you go.

Those creditor nations just think by themselves...let us just get a low return (or perhaps a moderate loss) on our US dollar investments and keep the friendship going, or we could face a complete isolation in international matters by veto...

1. You fund the deficit and have good international relationship although the US will lose hegemony and power over time, or

2. Stop funding the US deficit and risk protectionist measures against your nation, plus the added effect of serious fiscal reform in America, once again revamping the US as a global power and lose respect for the coming century...for example.

Choice is clear for them, but I understand Shiff's ideology and principle which I fully support by the way, from America's perspective.