wait, are you trying to tell me that a service economy is not really an economy at all? so we can't just borrow billions of dollars a day from the chinese in order to buy chinese products and think that is sustainable? we don't produce anything anymore so it is this giant downward spiral of borrowing and consuming and creating money out of thin air. we over regulate so much that it is unprofitable to open businesses so we send everything overseas and then we act surprised when we are in debt so much that we can't even afford to pay the interest on the debt. keynesian economics was wrong. it blows my mind that treasury bonds still get a triple A rating when we won't be able to pay for that debt. you would have to be insane to buy a treasury bond in my opinion. it might be guaranteed at a specific interest rate but that won't mean anything when we print money and devalue the dollar to pay for more consumption.
"If the Chinese say 'We're not buying any more Treasuries,' this could act as a trigger around which nervous market sentiment coalesces," he said. "People could start wondering how the U.S. is going to finance its deficit."
Peter Schiff analogy:
5 people are stranded on a desert island. 4 chinamen(not the preferred nomenclature) and 1 american. so they decide to divide up the jobs. 1 chinese guy does all the fishing, 1 chinese guy cleans the fish, 1 chinese guy gathers firewood, 1 chinese guy cooks the meal, and the american's job is to eat the meal.
if you ask an economist today about this system he would say 'the american is vital to this economy! he consumes the products of the other's and therefore provides them with jobs. But in reality the island would be a much better place if everyone produced and no one just consumed.