Maybe Someone Needs to Cut Up Their Credit Card?

  • The EconomistThe disappearing dollar THE dollar has been the leading international currency for as long as most people can remember. But its dominant role can no longer be taken for granted. If America keeps on spending and borrowing at its present pace, the dollar will eventually lose its mighty status in international finance. And that would hurt: the privilege of being able to print the world’s reserve currency, a privilege which is now at risk, allows America to borrow cheaply, and thus to spend much more than it earns, on far better terms than are available to others. Imagine you could write cheques that were accepted as payment but never cashed. That is what it amounts to. If you had been granted that ability, you might take care to hang on to it. America is taking no such care, and may come to regret it.

So while normal people have a hard time making their mortgage payments and getting by, and we have executives running around swindling money from stock holders, the US govt is no better with their rampant credit abuse.  Maybe it’s time for someone to cut up their cards…