Reply #29: Housing bubble about to collapse, US $ down the tubes [View All]

The only two aspects propping up the US GDP these days are consumer spending and house building, and *both* of these are based on credit generously lent from Chinese bankers. In other words, US growth is a mirage; as we outsource away all our high-tech jobs and gut our knowledge economy, we block our capacity to produce anything marketable.

This isn't going to last much longer. Zhao Xiaochuan, China's Alan Greenspan, has already moved the renminbi away from the dollar peg (with China therefore accumulating more euros, won, and yen than dollars). Moreover, Venezuela, Russia, Indonesia, Malaysia, and Iran are already selling some of their oil in Euros, with Iran initiating a Euro-based oil bourse in March 2006. So we basically have a bubble economy in the USA rooted in a currency (the dollar) that's becoming increasingly worthless. Not the best formula.