Overheated Economy

China is manipulating it's currency and currency manipulation could spread to other countries.

I read a book called The World is Curved, by David Smick, which had a chapter on China titled Tony Soprano Rides the Red Dragon. The chapter describes China's monetary policy as being run by Tony Soprano behind closed doors.

We might be crying fowl about the lack of transparency and control that led to the Sub-Prime Mortgage Crisis, but if China is hiding debut or manipulating it's currency is questionable ways, and China's economy collapses, watch out!

The US has so much credit tied up in China that if China's economy fails, then all the debt that the US owes China will be called in and there is no way the US can afford to make good on that debt.

I would like to think other more qualified individuals are thinking about these doomsday scenarios, but after the Sub-Prime Mortgage Crisis allowed such obviously toxic financial products to be sold to so many people, I have to wonder ....

It is damn difficult to legislate greed. But we need to try. The consequences for one country will inevitably be transfered to another.