Our problems were temporarily alleviated by another asset bubble. When that dissipates, the true economy shall be revealed. Housing was a temporary fix.
What will be the next asset bubble, or the next bandaid? Or is it possible that we can actually improve this economy so it prospers on our productivity and exports?
As of today, our economy prospers because we have the reserve currency. The more we buy from other countries, the more dollar they get. If they don’t want their currencies to appreciate and hurt their exports, they must use those dollars to invest back in the US. Funny game: the more we import, the more liquidity we get. How long can this game go on?
