Global stock market tremors continue as the Dow dropped 130 points before recovering after many of the major markets dropped overnight.
Investors are worried about just about everything. Several EU nations appear to bankrupt and threatening the strength of the Euro. At the same time, the U.S. is planning to spend $3.8T to fund its bloated government entitlement programs, which threaten the value of the dollar.
Japan is a mess and China is very upset about resent U.S. arm sales and increased tariffs that they are threatening the dollar by reducing or stopping their purchasing of Treasury bonds.
The global economy is beginning to show cracks in the wall of debt that is holding back trillions in printed money from flooding the U.S. and sinking the dollar. Yet, global investors are buying up Treasury Bonds because they have no other alternative to safety.
When the safest investment in the world is into the currency of the largest debtor nation in the world, we are in big trouble.
Yesterday global investors were fretting about the debt ratio of Greece because it is 30% higher than their GDP - but what about California? California’s deficit spending are about 60% higher than their income. The dollar is not any safer than the Euro.
I think we are on the edge of a steep cliff and the global economic crisis that was delayed in 2008 by massive government printing of money is beginning to come unglued.