Thursday, January 13, 2011

Bubbles In Flames

Burning the Great Firewall of China

So I'm trying to plan rationally for the future, which is a little difficult. However, some things seem very clear.

The United States is broke, and has only to realize the fact before all hell breaks loose. The Housing Bubble is still deflating, the Commercial Real Estate Bubble is swollen ominously in the wings, and the Municipal Bonds Bubble....well....let's just say that borrowing money from the Chinese to finance pointless land wars in Asia seems unsustainable.

Meanwhile, the Chinese are desperately trying to acquire commodities with their great stocks of American dollars, before the currency tanks, hyperinflation takes over, and all Chinese investments in America become worthless as the American consumer market for Chinese manufactured goods disappears in a small puff of smoke.

Then, China will desperately try to feed its own population, and maintain standards of living despite the quite sudden manufacturing glut and factory closures.

In this context, the sale of Alberta to China will make good business sense, and the arming of the Canadian border with Chinese mercenaries to keep out starving American rabble will be a done deal.