Koios
Recreational Kibitzer
- Nov 12, 2012
- 2,841
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How about Spain vs US? Or Ireland vs Canada?
Greece had integrity problems, but Ireland never did. Its GDP do debt ratio is almost the same as that of Belgium. So why it had to ask for a bailout?
Again, why does it matter? If anything it makes things worse for the US or Japan, as no one is going to bail them out either.
Even if you look only at US historically -- we are in a much worse fiscal situation than before the crisis hit in 2008. Why then our borrowing rates are now lower than ever before?
It's feeling circular and a cold beer and dinner out awaits. So I'll go with the easy answer: certs me. You win.
Have a good night.
You too. Enjoy your beer responsibly
Made it safely to dinner and back. One beer, it seems, is not over my limit. But thanks for having my back on that.
Meanwhile, why size matters:
Consider China, and its willingness to up the amount we're borrowing from them: With the US being its #1 customer, by a huge margin, and thus vital to China's continuing growth, which is slowing now that other, even lower-cost producers, are entering the market, what would the impact on China be if it allowed us to slip into economic disaster, or even a significant slump? Pretty devistating to China; yeah?
So they'll do everything they can to keep us afloat, economically. Other countries will, too, since the world's #1 economy, to them, equals: Their best customer, and vital to their success in making and selling stuff.
Does that bring it into focus?