Issues we don't understand

The Chinese stake in U.S. currency is an issue that I think all journalists knows about but few really understand. I've never pretended to. The most I could ever say is that I'm very aware of the fact, and understand, vaguely, that it's a potentially very serious problems. But that's about it. Until I read this James Fallows article, which I think all of us naifs in the blogosphere ought to study very closely. Here's issue laid out, explained clearly and in great depth, and it deserves much, much wider attention than it's yet received.

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I read the Fallows article first when my copy of The Atlantic arrived, and was struck by the lucidity of the piece. And the danger to the US and world economy.

Note that I've blabbered like a sub-prime pundit below as a comment on the 'Talk of the Recession' post, so I won't expand herein (even though I just sketched some of the interconnected problems). As I said there, who's looking at the big picture in the media and government, and explaining this to the people.

If the result of this 8 years of irresponsibility is a quick crash and a decade-long economic paralysis, this is going to get ugly real quick. Watch the bond insurers closely, pay your bills, and get ready for a rough ride ahead. My only investments now are in gold and US treasury bonds. I don't know where else to go, but even cash is suspect when banks get shakey and the value of the US dollar is falling off Freidman's flat earth.

Posted by: JimPortlandOR on January 30, 2008 10:34 PM

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