Thank you M00seUK:
I used the "junkie" and "drug dealer" analogy for a reason. Junkies are dependent on their dealers. Dealers have the final control. What if the dealers dump the junkies? Or worse insist on higher prices? With this control and power comes the ability to cheapen product and charge the same/more. Especially later down the road when the junkie [country's economy] is in real trouble and can't find other buyers [dealers] of our debt. Greece is a good example. Greece is at the mercy of the EU for a bailout and its survival as a nation. What's to stop China from dictating to US and EU countries if these countries need China to continue to buy their debt?
It's a slippery slope. There's no worry when there are buyers for US/EU debt. What happens when the buyers dry up and/or insist on higher yields. The pressure will only mount.
Carmine D.
PS: $54 BILLION in USA taxpayer funds went to the IMF [International Monetary Fund] to bailout Greece. It's my taxpayer money but I didn't give the approval for this funding. Quite the opposite, I would have declined. Why should I pay for years and years of the Greek's liberal government entitlement programs.
This message was modified May 18, 2010 by CarmineD