http://biz.yahoo.com/rf/000411/te.html
Doug Henwood wrote:
> D.L wrote:
>
> >It does every day, though, doesn't it? How much of a currency
> >devaluation has to occur before the U.S. can't service its debt? When will
> >the US government start being unable to write the checks?
>
> It's not the government that has a problem: the foreign capital
> inflow has effectively been financing a marginal propensity to
> consume of over 100% throughout this expansion, and, more recently,
> (corporate investment + stock retirements) > cashflow. While a
> reversal of the inflow wouldn't mean the onset of Armageddon, it
> could involve loud crunching sounds.
>
> Doug