An interesting post.....
What does the word "economy" mean to you?
Answer: The allocation of scarce resources by mankind within limited constraints.
However, America is the only country in the world that does not adhere to this meaning per se.
Why?
In short, because it can borrow and spend at will without any limitations. That is why it is called a US 'aconomy', not US economy.
It has the global reserve currency, and its debts/bonds are highly sought after by investors. In this crisis, the government is raising trillions of dollars to stimulate the 'aconomy' without fear. So much money is raised to resuscitate the country that if it doesn't work, the downside could be the world is staring at a bottomless abyss in the next few years.
http://clusterstock.alleyinsider.com/2009/1/can-the-us-maintain-its-iaiconomy
Thursday, January 29, 2009
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