Quote:
Originally Posted by afc wimbledon
The only people that save are the chinese, this screws them. Yanks don't save, they spend spend spend!!!!
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On the surface but if you dig down deeper you will find that China has somewhat turned their attention from Green to Yellow and become the worlds biggest producer of Gold and backed off on buying US Treasuries so they do continue to save, just in different asset classes. China's central bank has been instructed to increase gold reserves beyond Fort Knox levels.
Likely the reason the Fed has had to continue to print print print is because of the Chinease backing off on buying and they were/are the biggest buyer. It is a cell/phone cable company type relationship between the US and China and if the US isn't careful they could just end up printing themselves into the corner.