It is really obvious what I am talking about. We don’t have the money to spend on two wars and finance our domestic obligations. The only thing we are doing right now is printing money in the form of IOUS to anyone willing to finance our extravagant lifestyle. People are not realizing now deep we are in this debt mess, since no politician of importance has tried to highlight the importance and dangers of being over leveraged. We often complain about how China and other countries are export more than what we are exporting them. But have we realized that they are not forcing us to import their stuff. If there is a demand in the U.S. of goods that are made cheaply elsewhere, the importers here will definitely import them. If you go into any store, you will hardly find goods that are exclusively made in America. If it is not China, then it is some other developing country.
The labels may be familiar to the American public but the products are made in developing countries where they are lucky to have jobs-any jobs for that matter. So we import goods from foreign countries and pay them by issuing securities (I call it IOUs) to countries with interest. So we are financing our lifestyle with debt, just as we did before this recession. How long it will last, that is the question for the future to decide.