xerxes_ph, check out the composition of US federal debt - practically all short-term these days - no body is willing to lend for the longterm as it is financial suicide.
I agree that the US isnt going to pay back the debt, and even if it wanted to could not do so. The US federal debt is simply one big subprime loan. Unaffordable and toxic.
Greece is just a drop in the ocean - a spec on the global prospective. Problem is they are unable to print $$$ given they are part of the EU. So they are screwed. But funnily enough, they are doing themselves a favour. You see, govt jobs require private sector taxes to pay for them. They are out of balance, and now need to correct. This will serve them well in the future. Biting the bullet is the answer, not inflation.
re China: they have enough internal demand to cover itself economically. They also have the ace up the sleeve with FOREX gains to be made should they decide to revalue the RMB. Dont worry about China, they are smart and plan ahead. Anyone seen their govt commercials telling the the public to buy gold and silver... something in that folks.
Anyway, the answer to all this isnt spending. That is the problem. If you bail out every nation and bank you cannot logically expect them to worry about failure again. You remove the risk - massive unintended consequences there. So, like you or me, if i cannot pay the bills, I pay by sacrifice - the car, the home, the left kidney, whatever. That is capitalism, and that is what works.
Global taxes, initiatives, global warming lies, etc etc etc all reflect the desire to control people. Just wait for it, the next 'terrorist' strike wont be far away - we need another enemy, another distraction. I just hope it doesn't end in another war, but history shows that is what normally happens.
It is all very sad, but very very true unfortunately.
