The problem the US government is going to face is that they have two seperate pay masters to appease. First, the House of Saud owns approx 10% of the US economy, and so they can (and do) demand a certain amount of fealty from the US Gov't. And being able to bring the US to it's knees by dropping oil production probably doesn't hurt either.
The other is China, who are keeping the US Gov't liquid by continuing to buy the Federal Reserve paper. If, at some point in the future, China refuses to buy, then it is a reasonably short trip to the US being put under World Bank control, and forced to reign in on things like military spending.
And given the way US foreign debt is continuing to spiral out of control, at some point one of the US creditor nations (China, Japan, ...) is going to blink. And then it starts getting really fun...
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Date: 2005-12-13 08:28 am (UTC)The other is China, who are keeping the US Gov't liquid by continuing to buy the Federal Reserve paper. If, at some point in the future, China refuses to buy, then it is a reasonably short trip to the US being put under World Bank control, and forced to reign in on things like military spending.
And given the way US foreign debt is continuing to spiral out of control, at some point one of the US creditor nations (China, Japan, ...) is going to blink. And then it starts getting really fun...