So you ever wonder where all this money is coming from to pay for the TARP and the rest of the alphabet soup of facilities we have set up to save our economy?? Well, a lot of the money comes from our good friends in China. Yes, some joke about how our programs allow us to borrow from China to buy things from China, but from China's perspective, that is a big reason to supply the money we need. So what happens when we buy less from China because we are buying less overall or when China needs its money to support its own economy? We will soon see what happens, but I suspect it is not going to be pretty...
China sucking wind
I have read several stories over the past couple of days that seem to be ringing the alarm bells about China. Now, admittedly, ringing alarm bells about China is nothing new - it happens all the time - but these bells seem to ringing a bit more true and a bit more often. For one, China called back one of its leading economic leaders from a couple of international summits on an emergency basis (rarely a good sign) and the country is pouring a rather heavy amount of money into its economy to prop it up. Did I mention 67,000 bankruptcies in the country and lots of factory closings. This country (yes Palin it is a country not a continent) has been paying our tab for a while and may soon not be able to do so. Then what?
http://www.nakedcapitalism.com/2008/11/china-announced-586-billion-stimulus.html
http://www.bloomberg.com/apps/news?pid=20601087&sid=augL9_cumtA4&refer=home
http://online.wsj.com/article/SB122623724868611327.html
Long day, long week, little to say.
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