Much of this talk is over my state school-history major-brain. However, it seems to me that the current prosperity of the US is the same prosperity seen in a person with a large home loan, a large car loan, and a mountain of credit card debt. He’s living lavishly and living at the mercy of his creditors. The US is VERY affluent and has a LOT of debt. And taking the Machiavellian view, the US likes spending other people’s money and has no wish to balance its accounts if it can borrow without genuinely repaying.
Also I would presume that the rest of the world is becoming concerned that our currency (and ability to purchase goods or repay debt) could collapse catastrophicaly.
Throw $120 bbl oil in the mix and we have interesting times ahead, indeed…
