Should an IOU backed by faith and credit remain relatively stable as long as faith and credit exist?

 

 

  

Should interest rates and financial markets rise or fall

if the rest of the world becomes less able or willing 

to finance American lifestyles? 

  

We were taught in Economics 101 

that countries could not for long sustain  

large ever-growing trade deficits 

  

…our country has been behaving  

like an extraordinarily rich family 

that possesses an immense farm 

  

In order to consume 4% more than they produce 

 that's the trade deficit 

we have, day by day been both selling pieces of the farm 

and increasing the mortgage on what we still own 

  

Warren Buffett