What you have said is based in fact. Look at the amount of foreign aid oops I mean investment we need to keep our economy going–its to the tune of billions per day because we as a country spend more than we make. The problem is if we cut off or limit this investment without getting our own house in order our economy would deflate and it would cause huge problems for not only the government but joe six pack. I believe we should do this but it would take cutting back on all government spending along with the ave person turning into a saver instead of consumer before we just cut it off. What most people do not know is China, Russia and the Middle East hold enough dollars to nuke our econ system now just in dollar holdings and they have talked about doing this which of course effects our policies in government and not to the benefit of the US population. If you think about it real money and power is created by two thing and that is oil and trade surples neither of which we have. We must quit with oil dependence and the way to do that is alternatives to energy consuming products, but look were are heads get their or made their money–oil and large multinational corps which is causing the inbalances to begin with.

Wasn’t it Napoleon who said “Never ascribe to malice that which can adequately be explained by incompetence”? I don’t see any reason at this point to suggest that it is anything other than the Federal Reserve printing money like it’s going out of style as an explanation for this mess, led by a bunch of politicians who think they can keep the printing press rolling and hope the ill effects don’t really hit until the next guy gets voted into office.

Could your scenario be true? Perhaps, but I’d need to see a little more than conjecture before I really put any stock into that. If you come up with evidence to show that the scenario is plausible, let me know.

Think in bigger picture is the message here. Starting from the source: Everyone blames subprime borrowers for this turn oil, now it’s about US currency and oil price around the globe…etc. Sure this is a serious argument but the validity of this argument is underlying at the source of money. Who control or have such access? Anyone ever asked that? Today’s environment where oil is traded between 92 – 99 per barrel; the real cause isn’t at subprime borrowers as many suggested. The chain reaction it is at the source of funds and foreign investors what we called hedge fund, from US insurance companies and foreign investment companies are the majority of players on wallstreet today. US Mortgage back end security is purchased by the hedge fund firms, as many of you know. In the mortgage lending world, imaging driving your vehicle at 100 miles and slam on your break to stop in 10 seconds. Who has this type of power? Well, I hope you see the point here so far. If not, go to http://ml-implode.com and read about how it happened from the past few months.

My thoughts are: How many hedge fund companies are back by foreign companies? Out of those foreign companies, how many of them are control by the “undesirable” countries that is not allies or enemy of US? US War on Iraq is not a popular one, as you all know. Could the threat of Bin Laden of bring US economic down to its knees is true? By attacking financial banking system to its halt and such disruption is work of terrorist? It’s looking more like a 9/11 on our economic as we are currently experiencing the transition of after effect. Some of you might say: oh, this is not that serious and US economic will be back next year. The global terrorist strategy that I am suggesting equates to slow down in US economic where inflation climate pushing dollar valuation lower. It has come true. Leaving this world economic rocking and unstable. Which one could cease an opportunity in the commodity market of oil, which controlled by Middle East mainly. The point here is, has US ever thought about controlling those investment dollars from foreign countries or imposes certain regulations in the monetary flow of foreign dollars into US economic? I would only assume there is no such policy existed based on what I have seen so far.

What is next when you take the supply money chain away? Continue to lower rates from central reserve as the answer? No. Go after lender, mortgage loan officers? Go after Iran start another war? Pull out of Iraq now and cut the loss? Drilling US continent for more oil? Ask domestic and foreign car manufacture to speed up in hybrid vehicles and seriously invest in energy hybrid distribution facilities US wide? Or this is the strategy to close the gap of trade deficit around the world? Could Bush be that smart? Well, it al comes back to the source. MONEY.

Damage has been done. But its time to set those foreign investment policies to control domestic US investment flow is essential.

I would like to hear some good argument or comment of the above? Any?

Spiros

In the meantime, the price of oil would drop dramatically until it reach a point stable between supply and demand. Then countries like India and China would buy more, slowly driving the price upwards.

In the meantime, of course, the global economy would collapse into a massive depression as all the economies built around the petro-dollar tie collapsed.

I think that Ahmadinejad and Chavez are fantasizing a bit. Its quite obvious that the Saudis don’t support this. Therefore it wont happen.

The world knows who these two men are. They stay awake at night coming up with ways to insult greatest nation on earth.

They are not doing their struggling nations any good by poking jabs at the US. I pity the citizens they are supposed to be working hard to represent. They are squandering real opportunities that lay before them for headlines.

Meanwhile we just laugh at them.

And Hans–what are you talking about? populate what? a Woman? Please, radiation kills sperm too!

both the USD and Euro have very serious problems with this, because if a fiat is not implicitly backed by direct commodity, it is implicitly backed on promise of continued economic prosperity and payment by the population of the respective bloc/country.

but to any thinking individual policymaker or economist, both the Euro zone and the United States are already suffering plateau-ing populations with age distribution headed for a very top heavy old population (not accounting for legal and illegal immigration.) the math is crystal clear, and i just think we are in very, very deep trouble.