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Bruce[_17_]

wrote:
On Wed, 10 Feb 2010 13:34:18 -0500, John H
wrote:

Come talk to me in 2012 (when the end of the SS surplus is in sight)
and see what everyone is talking about, including the Democrats.
I guarantee it will be the debt crisis and the impending failure of
Social Security.

That would be true only if those particular Democrats have enough
sense to see what's going on.

The reality of the loss of the SS surplus will be on our door in 2012.
If nothing else, they will not have that slush fund to attempt to
balance the budget with, although with a deficit approaching $1T that
is an insignificant number.
The real question will be whether China decides to cash out of
treasuries or what interest rate we will need to offer to keep them
attractive.

Small tariffs - insignificant to the buyer will add up to HUGE dollars
considering everything we import from that country.