Quote:
Originally Posted by Lenny2
This if course assumes that our economy is unstable, which is untrue.
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The current US economy is... maybe not yet "unstable", but is a massive problem where there is little prospect of getting a balanced economy back for... at least 10+ years.
The country has massive debts pro rata population - the highest in the world. Borrowings from other countries are approximately $10-$13 billion/day (including loans from China of around $3 bill/day). If you look at the US markets over a five year term, they are among the worst performers, returning less than 3.5% annually. There has been a growing balance of trade deficit since the late 60's. 46-48% of the national debt is owing to other nations.
This scenario is obviously unsustainable and sure gives good reason to think the economy is unstable. Any external action of a creditor can severely affect the dollar - not a good situation.