OK, so some of you may not have heard me go on about the amazingly whacked out place we are in economically, but I just came across a hint of what a freaking goddamned disaster the world could become in a very short time.

The short version: China just happens to hold a VERY large portion of the US debt.  Nearly $1 TRILLION...along with a LOT of US Dollars, bought on the currency market.    When I discovered just how far this had gone, last year, it sent chills down my spine.  (It didn't help that I wrote my award-winning bachelor's thesis on the topic of the US deficit and debt..)

This week, for the very first time, they threatened to sell those bonds off, and dump dollars, if we try to pressure them to revalue the yuan.
 
Check out this Telegraph article (leave it to the UK to do the best reporting on the US economy), and then please, please tell me how in god's name we can even begin to cope with this?

I was feeling a bit nervous about the sub-prime mortgage mess, and the rumours that Dick Cheney will get us into war with Iran... but this, this is the end of the world as we know it.  Maybe not today, or tomorrow, but at some point, it really, really is gonna hit the shitter in a big, bad way.

I think I'm gonna go shop for a new mattress, to put my gold coins into, because dollars may not be worth much at some point in the not-to-distant-future.

Tags: bonds, buy gold buy often, china, collapse, debt, deficit, economic blackmail, economics, mattress
Current Location: Someplace very uncomfortable
Current Mood: Terrified
Current Music: none, what could possibly help?