“And domestic credit creation-the bank loan- has funded the Chinese desire to hold a $US deposit at the bank.

Where’s the ‘foreign capital?’ There isn’t any! The entire notion is inapplicable.

Instead, they are dependent on our domestic credit creation process to fund their desire to save $US financial assets.”

Question:

There seems to be a lot of debate at the moment about whether or not the time will come when the Chinese and the other BRICs will stop wanting to invest in $ financial assets. What happens then? Presumably the $ will fall in value (whatever that means) and the US consumer will be worse off? Inflation will rise? US consumers’ $ savings will decline in real value (purchasing power) and therefore US consumers will be worse off?

It can’t all be as simple as changing entries in a giant monetary spreadsheet?

(from Wikipedia) The Second Bank of the United States was authorized for a twenty year period during James Madison’s tenure in 1816. As President, Jackson worked to rescind the bank’s federal charter. In Jackson’s veto message (written by George Bancroft), the bank needed to be abolished because:
It concentrated the nation’s financial strength in a single institution.
It exposed the government to control by foreign interests.
It served mainly to make the rich richer.
It exercised too much control over members of Congress.

MR MAGOO: I hear what you are saying. Just pointing out that any engineering solution needs to also acknowledge the fact that you will have a King. How do you keep a decentralized solution decentralized? Didn’t work for the US. Didn’t work for China. Isn’t working for Europe. Not saying there’s any easy answer, just pointing out reality.

http://globaleconomicanalysis.blogspot.com/

You once told me we have to deal with the cards dealt us, but then I think why would a guy make ANOTEHR supercar when there are already so many ferrari, corvette, viper, bughatti, lamborghini, porsche, etc etc already. Did the founding fathers accept the cards dealt to them before fleeing europe? Did martin luther king? The tax code is such a massive leviathon, no “government” has written it – that seems to infer there was a structure and guiding process instead just a mish mash of self contradicting obscurity, and no “government” official understands it all. The mere complexity of it makes it nonsense.

“Same with the VI program. It was implemented to try to help the economy here. It was also aggressively promoted by the US govt.”

It is so beneficial Warren, like you and I am sure so many others, I am motivated to move there and get my own piece of that tax savings.

“Zanon: It’s good to be King, or at least good friends with the King. That will never change, but we can hope for a King who knows how to run his country, no?”

I used to have long debates with my poli sci professor who wanted to convince me the best form of government was benevolent dictator. The KING is limited by his nueral connections in his brain Zanon, it is a HARD PHYSICAL limit, that is why you design things in such a way where they are efficient at the local distributed level and not require a central point of control. Our whole system of government has not scaled has the population levels have grown. 100 senators, a few supereme court justices and 1 president cannot effectively represent 350 million citizens, not even close.