More on the bankrupting of America

Reich: U.S. headed for 'day of reckoning' SAN JOSE, Calif.--The United States is headed for a "day of reckoning" as oil prices and the budget deficit remain high, consumers keep spending and not saving, wages remain stagnant, housing prices rise and the working population ages, warned Robert Reich, former Department of Labor secretary in the Clinton administration. [C|Net News]

The American economy is going to have to inevitably make a structural adjustment (with regard to lack of consumer savings and the budget deficit), or the entire world is going to suffer.

This should come as no surprise and yet there are millions of people, both in and out of government that just do not understand enough basic economic theory to grasp these simple principles. As a nation, the United States is in serious debt. What is worse, the debt is being held by countries that the current administration has deemed to be threats to the stability of the country because of their links to terrorism. But they are holding the paper the future generations of Americans are going to have to pay off or deal for and it is getting to the point that some of these countries do not want monetary concessions. Think about that with your morning coffee...