Reply #31: I Agree That The Day Of Reckoning May Still Be A Few Years Off [View All]

[Strelnikov_]

Although I don’t think the intervening years will meet their definition of a ‘good year’.

In the Frontline program on China-Mart (aka Wal-Mart) last night one of the items that stood out was that the majority of the jobs offshoring has occurred in the last 3-4 years.

The only thing keeping the economy afloat is Federal deficit spending, borrowing against private assets (real estate, retirement, etc.), and the remains of the liberal social welfare system. The big question is how much of these assets remain untapped. By the feel of things, we could still have a couple of years until a critical mass of assets have been stripped.

Doesn’t the economic policy of the GOP remind you of a mob ‘bust-out’. That is when they get their hooks into a business owner, run up massive debt against the business by buying product and selling it out the back door, and leaving with the spoils once the bills come due.