Reasons to Worry - New York Times

Reasons to Worry - New York Times

A rather sober analysis of the state of fiscal affairs in the United States. We have reason for concern when so much of our government's debt is held abroad, particularly by China. Meanwhile, the U.S. government is on a spending binge, both militarily and for social programs.

"As a result, there has been an immense rise in foreign ownership of American securities of all kinds, but especially government bonds. Foreign ownership of the U.S. federal debt passed the halfway mark in June 2004. About a third of corporate bonds are now in foreign hands, as is more than 13 percent of the U.S. stock market. One analyst has half-seriously calculated that at the current rate of foreign accumulation, the last U.S. Treasury held by an American will be purchased by the People's Bank of China on Feb. 9, 2012."

It seems inevitable that we are heading for a train wreck, how serious is unknown. I doubt we can continue to expand our economy ad infinitum to solve these problems. There will be a day of reckoning...soft landing is what the economists call it.