Slave to the Lender

Proverbs tells us very plainly that the borrower will eventually become slave to the lender. In the case of the U.S., we may end up being forced to listen very carefully to what our Chinese lenders have to say.

Today they are saying that we are printing too much money and this is the resultant headline and sub-headline;

China alarmed by US money printing
The US Federal Reserves policy of printing money to buy Treasury debt threatens to set off a serious decline of the dollar and compel China to redesign its foreign reserve policy, according to a top member of the Communist hierarchy.

Now check out this last lines of the article;

Mr Cheng said the root cause of global imbalances is spending patterns in US (and UK) and China.

"The US spends tomorrow's money today," he said. "We Chinese spend today's money tomorrow. That's why we have this financial crisis."

Yet the consequences are not symmetric.

"He who goes borrowing, goes sorrowing," said Mr Cheng.

It was a quote from US founding father Benjamin Franklin.

Spending tomorrow's money today....isn't that how the American dream works??

It's kind of a sorry state of affairs when the Chinese have to quote one of our founding fathers in pointing out our spending errors.

Read full article here; http://www.telegraph.co.uk/finance/economics/6146957/China-alarmed-by-US-money-printing.html