Saturday, March 28, 2009

What happens if the boat sinks?

All try to escape and find safety.
That is what happens right now to USA and its symbol: the Dollar.

Once the last hope of a fast recovery has gone, or will be gone, they will let the boat to sink in order to avoid to be pushed into deep water like it happened to Iceland.

"Our singular focus is on increasing lending to support economic recovery. Everything we do to stabilize the financial system is done with that goal in mind."

There are two options to achieve this goal.
One is borrowing money from other countries with the promise "We will give it back".
But once it is clear that the "giving back" American style is "not giving back at all" it is getting difficult to find the gullible Nation that lends.
Not even China.
When the success of your economy is based on the destruction of your finance it is not a success anymore.

The other option is printing paper money, with the same result.
The "giving back" will be equal to almost zero value and I hardly see a chance of recovery in that.
It could be if America would be energy self sufficient, which is not and is not willing or doing anything to be.

The boat will go on sinking and most of the friends will have to find another mean of transportation in order to save "themselves".

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