The recent warning by Standard and Poor , Moody to the US mounting debt and derating Observations, FED’s worries and today’s Chinese Concerns, are marking a countdown for cutting US bond ratings. The News that, US is planning for a ‘ Technical default’ in Interest Payment, has shivered all.
It brings a Lump to the Mouth. With a 1 Trillion US Bond Holding China, Its a default and very difficult idea to digest. A country, which kept its saving bank interest rate very low. Thus, Using , Money saved by the common man at no cost and lent it, Chinese companies to generate competitive Cost module for Growth and allowed thus ‘ Discounted Goods’ for exporting and earning $’s. While, US and Europe, freely lent this Credit to all, creating a Lazes' fair , ‘ Consumption Society’. Wall Street jumped this “ Credit Aberration’ Bandwagon, and engineering fictitious ‘ Derivatives’ . And, All Integrating into a False and Void, Financial Systems.
The Bulge poured in Housing Market and Cronies Ramped up, Prices to sky and the common man in US and Europe is now Entrapped in Debt, for Unknown Time. Banks, Insurance Companies, Housing Lenders, Investors and et.al.
Mr. Ben Bernanke and co., Hence, Added more and more Money, to fill this artificial space and values. Trying to render some Credit Worthiness to this Junk. But, Only for short term. The Program got extended , as QE 3. The affairs appear to get better, But the “ Debt Fire” is still on. Sometimes, surfacing in Portugal, Greece… Dubai.
As the Program is ending the Question remains, As FED stops funding the US Bonds and China turning back. Who will Buy US Bonds... ? How US will pay the Interest ???
The Debt Fire is now encircling the Globe and Eagerly, waiting to Engulf ?
With No Place to Hide and No place to Run ..!!!
