sheridan

The American Crisis and the Case for an Inflationary Depression

Foreign governments have not reduced tehir purchase of US Debt -yet in fact China is increasing purchases in a desperate attempt to support their own economy- that is what Paulson was doing over there earlier this week.
Also, why does everyone use the word deflation and not dis-inflation?
hard assets were over-inflated and must revert to their true value.
If your house went up 100% in 5 years, it should go down to reflect a 30%ish appreciation level over that same time period. I would not call that deflation.

The U.S. Debt Quandary

Foreign economies like China are buying our debt in order to keep their economies from slowing down because we're their driver. It's a self destructive loop-just a m,atter of time before it ends.
US has a very difficult future ahead but we still have all the food, all the water and are more free than most other countries so should work out long term.