US Economy

I happened to read an article that was written by one reporter, Emanuel Shahaf from Jerusalem. Nice article on the US economy. Good one ..very frank and straight. It says about the recent mess-up in Guantanamo Prison, the inherent ambigiuity in the US electoral process (where Bush won even when the majority wasnt with him) , but one statement that stuck me most was in which the author writes "A hugely negative balance of payments, combined with a below zero-rate savings has given rise to a situation where figurately speaking, americans now make a living selling houses to each other, financing the deal with chinese mortages"!!!

Wah thats a statement and majority of that is exactly true. In a latest report published by IMF , more than half of the investments being made in US capital markets and more than half of the money sitting in US banks are from China and Japan. This means, the moment these chinese and Japanese start drawing their money out of these banks in US, you will see the mighty US coming down like a building made of cards!! To end this blog, another interesting aspect is that more than 70% of US dollars floating in the universe are held outside the US.

Such a bloody situation for any country to be in...!