Friday, November 24, 2006

The Big One?

Former Clinton Treasury Secretary Robert Rubin, now an executive at Citigroup, has been up-front for months in warning of the unsustainability of the Greenspan "wall of money" economy. In statements widely circulated on the Bloomberg financial wire Nov. 15, Rubin said the failure to stem the growing U.S. budget deficit may spook the central banks, hedge funds, and others who have been buying U.S. Treasury notes. "It seems almost inconceivable that this will continue indefinitely," Rubin said, in a videotaped message for a dinner hosted by the Concord Coalition. In a panel discussion at the event, former Federal Reserve chairman Paul Volcker concurred, saying that the U.S. borrowing requirements raise the risk of "crisis." "It's incredible people have gone on so long holding dollars. At some point, you will get a situation where people have had enough."
While the value of the U.S. dollar is already falling, the collapse in foreign capital inflow could turn it into a rout.
Most of the rest of the article is devoted to
diverting attention away from the results of
The Gun in the Room.

Expect the usual idiots to call for more of
those guns.

See the article.