Great stuff from mish : “Dubai Defaults - Deflation In Action - Watched Pot Theory Revisited” -
By Daniel at 27 November, 2009, 9:23 am
excerpt:
“Might the US dollar blow up? Yes it might. But so could the RMB if China floated it, and so could the British pound. No one seems to see the crisis brewing in Japan with a huge demographic problem, a shrinking population, falling exports, and no way to pay back its national debt…
“There is seldom a mention of the problems in European banks who foolishly lent money to the Baltic States in Euros or Swiss Francs and now those Baltic country currencies have collapsed and the loans cannot be paid back. European banks also lent to Latin America and those loans are also suspect. Arguably, European banks are in worse shape than US banks, but no one talks about it, at least in the US…
“Spain has unemployment approaching 20% yet must suffer through the same interest rate policy as Germany. Seldom does one hear about this either…
“Certainly the UK is a complete basket case with its banks on government life support. Iceland has already blown up, who is next?
“Most are not aware of the problems in China, Japan, or Europe. However, the problems in the US are universally well understood….”
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