China’s Concerns

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The recession occurring in the United States has lead to financial distress in many other countries over seas, but no country is more intertwined with the US economy than China. In a recent article published by MSNBC, China’s vice governor of the People’s Bank of China discussed the rising fear looming over failing U.S businesses. China is Washington’s biggest foreign creditor, holding an estimated $1 trillion in U.S. government debt. Investing in US treasury bills is

“an important component part of China’s foreign currency reserve investments, so as an important component we are naturally relatively concerned with the safety and profitability of U.S. government bonds.”  Continue reading

My Big Question = HUH?

HUH?

Sources: Moody’s Economy.com; Congressional Budget Office; Office of Management and Budget
Notes: U.S. Deficit measured in billions of dollars; GDP measured in 2007 U.S. dollars

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Preventing Human Nature

While reading about the debacle and collapse of Enron, I find myself constantly drawing connections between the largest bankruptcy in U.S history, and the pending doom faced by our nation’s banks. Before the U.S began to expirience an economic downturn, both Enron, and our nations banking powerhouses, such as Citigroup, both strongly resisted government regulation. Instead, companies perfered a free market without government rules and regulations. Enron, and other companies during the late 90’s, stressed the importance of free market trading and deregulation, because quite simply, thats how the big bucks are made, and to Enron, thats all that really mattered. Although free markets create massive amounts of wealth, as we saw with Enron (and now our nations banking system), thay can also create huge problems. Continue reading