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How the American Government Could "Maintain" America's Standard of Living

Here's a "simple" formula for "maintaining" America's standard of living: Continue to run up the country's debts to China (and other countries). That's because if you owe the bank a TRILLION dollars, then the BANK is in trouble. This could last for some years. Meanwhile the merry-go-round continues. Eventually the bill comes due. Then declare a de facto default. It could be a moratorium or a "restructuring." But any way you slice it, China (et. al), will get less than 100 cents on the dollar.

Such a default could be enforced only at the point of an American "gun." Likewise, full payment would be enforced at the point of a Chinese gun. In any event, that is where America (and the world) is headed if we don't quicky take corrective policies to rein in spending.

Mao Tse-tung famously wrote, "Political power grows out of the barrel of a gun." He could have been referring to economic power as well.