End of the credit line?
http://www.guardian.co.uk/economicdispatch/story/0,12498,1038689,00.html
America could be in for a nasty shock if foreign investors decide to
stop bankrolling its massive trade deficit, writes William Keegan
Tuesday September 9, 2003
A hegemonic economy can do what it likes - or can it? The widespread
assumption in the financial markets until recently was that the Bush
administration can go on piling up record trade deficits and there is
not much the rest of the world can do about it.
Indeed, what the rest of the world does, especially the east Asian
part of it, is to recycle hundreds of billions of dollars straight
back to New York, in the form of purchases of bonds and Treasury
bills.
This arrangement, we are told, produces bliss all round. The US
consumer carries on consuming more than he or she produces; the US
government carries on borrowing as if there were no tomorrow; and
countries such as Japan and China do not have to revalue their
currencies, thereby retaining the international competitiveness that
sustains the remarkable Chinese growth rate and Japan's slow recovery
from recession.
William Keegan
http://news.google.com/news?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&scoring=d&q=+%22William+Keegan%22&sa=N&tab=gn
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bond market
http://news.google.com/news?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&scoring=d&q=+%22bond+market%22&sa=N&tab=gn
http://www.google.com/search?num=100&hl=en&ie=UTF-8&oe=UTF-8&scoring=d&q=+%22bond+market%22&sa=N&tab=nw
http://groups.google.com/groups?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&scoring=d&q=+%22bond+market%22&sa=N&tab=wg
http://www.google.com/search?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&scoring=d&q=+%22bond+market%22&sa=N&tab=gd&cat=gwd%2FTop
hegemonic
http://news.google.com/news?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&scoring=d&q=hegemonic&sa=N&tab=gn
http://www.google.com/search?num=100&hl=en&ie=UTF-8&oe=UTF-8&scoring=d&q=hegemonic&sa=N&tab=nw
http://groups.google.com/groups?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&scoring=d&q=hegemonic&sa=N&tab=wg
http://www.google.com/search?num=100&hl=en&lr=&ie=UTF-8&oe=UTF-8&scoring=d&q=hegemonic&sa=N&tab=gd&cat=gwd%2FTop
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