At some point...we are going to have to admit that this TRADE DEFICIT is permanent...
And it ain't going away...ever!
So, does this mean that China eventually owns the US?
This notion that "things will correct automatically," which is popular with the FED, has the small problem in that it would also mean a deep global depression; as consumption in the US and production in China and elsewhere plummets...
Still, the powers that be are content with simply saying: "Sooner or later...." and just leaving it at that...
Well, sooner or later has a nasty habit of happening a lot sooner than many 'experts' think...
My hunch is that 2006 is going to show signs of real trouble sooner rather than later... Note also that foreigners already own 50% of outstanding US bonds...and that they have been buying LESS BONDS lately, than they used to in the past...although foreigner central banks are still very, very large buyers and holders of US bonds...
