The USA has lost control of its debts - (07Jan11)

The USA has lost control of its debts - Jim Chanos (07Jan11)


The USA has lost control of it's debts, with President Obama not cutting spending in any meaningful way, and the military spending and "TSA" spending - the biggest drain, continues upwards.

The question is, how much longer will China and net creditors continue to bankroll the wasteful spending, and if the USA will default on it's debts, further crippling it's economy.

You have to say, the USA has bought the predicament onto itself. They are one of a few countries that actually believe in the Keynesian Economics theory of pissing money up a wall in a recession, when you don't actually have any money. Printing money from thin air has made the situation FAR worse, and bailing out the corrupt and insolvent banks was a disaster - they should have been forced to collapse.

The UK got rid of one great fan of Keynesian economics, Gordon Brown, now the USA MUST get rid of Pres. Obama at the next election, or there will be no USA to speak of economically - no matter if they are seen still by suckers as a world reserve currency.

The reserve currency now will return to gold and silver, where it should have been in the first place. A currency back by something physical, not based on hot air and worthless promises of crooked governments and crooked bankers.

Recorded from Newsnight 07 January 2011.
And how do the people that bankroll America like China feel about having their investments devalued? Quantitative Easing will not get the US economy out of the hole they dug themselves in.