Friday, June 10, 2011

Let's Tie A Couple of Stories Together

The Economic Collapse Blog ran a story that the Chinese are involved in negotiations to build a 50 square mile city near Boise, Idaho.  This was picked up by WSRA - hat tip for the link.

The Chinese are making more inroads into the US - buying their way in.  They are overflowing with US dollars from the trade imbalance, and we owe them much more.  In effect, they are getting their payback in land and other benefits.  

I've pointed out for as long as I've been aware that the Chinese are getting rid of dollars and going on a buying spree - not just buying gold, say, but buying gold mines and buying up scrap metal lots.  This is more of the same.  Their version of Moody's bond ratings says that we've already defaulted on our debt, so what can we pay them back with?  What do they need the most?  Arable farmland to feed their billions.  Since about 3/4 of the western states are Federally owned lands, what else can we pay them back with.  (Yes, I know their bond rating service is likely biased against us; I think Moody's and the others are biased in our favor.  Would you loan money to this government?)

I think we're seeing nothing less than America being taken apart.  It's the first Nation Going Out of Business Sale.  Not "National".  Not "Nationwide".  It's America's financial collapse hitting the accelerator.

2 comments:

Tam said...

"I think we're seeing nothing less than America being taken apart. It's the first Nation Going Out of Business Sale."

The problem with this is that nations don't work the way you and I do.

When we get liquidated, the sheriff's deputies come drag our stuff to the auctioneers.

But we don't have tanks and nuclear missiles.

If things get financially ugly enough, a lot of people who go on about the End of Large-Scale Conventional Wars might eat crow.

There's nothing uglier than a junkie backed into a corner, and we've got a whole government full of them.

Graybeard said...

There's nothing uglier than a junkie backed into a corner, and we've got a whole government full of them.

We also have a country full of people depending on Fed.gov to help in their basic survival.

I'm really crappy at figuring out timing, but I think from a purely practical standpoint, recovery isn't possible at this point. No politician has had the guts to talk about what's really necessary.