For years, financial investors have borrowed cheaply in Japan and deployed their assets for high returns in the US and Europe. As the US dollar has collapsed, the carry trade has not ended. Rather, the US is now in the process of moving to being a place where assets are borrowed cheaply from a place where they are deployed. So, thanks to Bernanke, Gutierrez and Paulson, we are now about where Japan was in 1990. These folks have set us up for a decade of economic stagnation in order to try to pay for our deficit and debt.
Submitted: Mar 14, 2008
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