Archive for May, 2010

Oh what a difference…

May 17, 2010

Oh, what a difference twenty years makes. Scanning through the finance section on the Telegraph website a piece by Edmund Conway caught my attention. The article, in short, detailed the difficulties the United States would have in financing its debts — particularly since the US bonds tend to have a fairly short maturation — 4.4 years to be exact. This is where the juicy irony comes in… Late in the Bush Administration and now, during the Obama administration, the United States has managed to spend its way into such a hole that it would take generations to pay off. The lion’s share of this, the debts accrued in late 2008 and Obama’s incontinent spending on anything under the sun in 2009 will come due in the period of late 2012-2013. Twenty years before this the Soviet Union collapsed in on itself. The United States will, at that point, be even more reliant on foreign sources for its oil. As the Middle East is rapidly drying-up much of this oil will be Russian. Since the United States doesn’t have two farthings to rub together it will rely increasingly on surplus-states like, say, Russia. to finance its deficits — especially with Mr Hope-and-Change’s spending plans. It is not that I am overly sympathetic to Russia — Russia is Russia and has its place in the world but is certainly not the most kind or just of lands. It just strikes me that, not too long after the United States poked its finger in Russia’s eye at every opportunity — just a few short years after the American establishment mocked Russia and its travails that the United States would, itself, be prostrate.