IS THE USA TEETERING?

TEETERING - not Tweetering. The United States is being lead to the precipice by President Obama and risks a painful slide down a slippery slope to mediocrity and impotence. The US Debt Clock gives a live picture of the present situation seen from a strictly numerical viewpoint. What is does not show is that the current administration is implementing policies which are disadvantageous to the very forces that will lead the US out of the current crisis. Many contributors on this site have produced compelling examples of this behaviour. Yesterday - the financial markets began to exhibit the first signs of just how the United States may go over: the recent fall in treasury prices does not bode well for the ability for the US Treasury to finance Obama's stimulus /rescue program as it floods markets with longer termed paper. Watch out if the Federal Reserve Bank becomes an increasingly dominant buyer of US Treasuries as private capital and foreign banks begin to choke on the plat du jour. Any weakness will be compounded by negative psychology in the market and an increasingly weak dollar. With a President who seems to emulate Carter abroad and Chavez at home I am afraid the next decade may be one of a weak dollar (-30%-50%-90%) and an Eagle with broken wings.