The main problem is that an increasing debt will result in higher interest payments making less money available for socioeconomic development. To pay for the debt, the Government will have to raise taxes, which will reduce the competitive position of US in a global economy and chase investors away resulting in less economic activities and more job loss. Med Yones, global economic expert, calls it a vicious economic cycle. Details can be found at
Buying US Treasuries does not have any sense. The US will not be able to repay foreign debt. The advice US investors are getting now is to take their wealth out of dollars and out of the country. Russia would be better off by investing more in its own country.
March 10, 2009, 16:31
The main problem is that an increasing debt will result in higher interest payments making less money available for socioeconomic development. To pay for the debt, the Government will have to raise taxes, which will reduce the competitive position of US in a global economy and chase investors away resulting in less economic activities and more job loss. Med Yones, global economic expert, calls it a vicious economic cycle. Details can be found at
http://www.iim-edu.org/u.s.economyrisks/index.htm
March 05, 2009, 06:33
Buying US Treasuries does not have any sense. The US will not be able to repay foreign debt. The advice US investors are getting now is to take their wealth out of dollars and out of the country. Russia would be better off by investing more in its own country.
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