Monday, October 06, 2008


Neither McCain nor Obama will be driving the real change that's coming:

...when the U.S. government gets half its borrowings from abroad, at a time when the U.S. household savings rate is hovering around zero and China alone is already holding around $1 trillion in U.S. Treasury notes and Fannie Mae and Freddie Mac bonds...

"The next round of capital that comes in from abroad is going to be much more demanding and move into real assets,” argued Jeffrey Garten, professor of trade and finance at the Yale School of Management. “Being a bigger debtor nation means losing even more of our sovereignty. It means conducting our economic policies with an eye toward whether others approve. It means bearing the advice and criticism that we have dispensed ad nauseam to other countries for over half a century. It means far more intensive consultations with other capitals on our fiscal policies and our monetary policies.”

...Of course, neither Barack Obama nor John McCain dare talk about this now. They want to pretend nothing has really changed...Thomas Friedman, NYT

I very much suspect that there will be much more widespread and deep"change" than this.

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