re: How to Create Your Own Economy

Tan Boon Tee — Tue, 14 Jul 2009 03:25:59 GMT

To what extent is the book title relevant?

The content aside, THINK ahead by focusing on today’s news headlines, July 14, 2009:

• US budget deficit hits $1 trillion

• US loan defaults hit record level

• Hints of US second stimulus plan

• Unemployment drives up all kinds of delinquencies

The negative info keeps pouring in, not to mention the national debt has been sprinting towards $11 trillion; yet the Dow manages to struggle up by 2.5%, providing a false sense of hope. Meantime, the oil price drops to just below $60, a 20% dip in less than a month. What do all these mean to the ordinary folks?

Unemployment rate is expected to reach 10% soon. With more people jobless, dole benefits would increase, to be compounded by the proportionate decrease of income tax. The Treasury keeps shrinking further and faster, but the plan for second stimulus package is said to be on the way.

With all the trillions of dollars hooked up in US treasury bonds and other assets, Beijing seems to be at a loss of what the next smart move should be. To quit or not to quit, that is the question. If China were to withdraw its commitment from the US, the world economy may plunge into an irreparable and irreversible collapse.

Any one NOT WORRIED?

(btt1943)