Professor Elam

Tuesday Jan 26, 2010

Mish and the WSJ hold forth in the Bernake appointment as FED Chair. After reading this article. put it together with the last post. Jim Rogers says that one of the two bubbles in the world is the American debt, ie, we cannot keep borrowing without producing. And re appointing Bernake will keep the money printing press in high gear, can we stand another $1.25 Trillion in debt?  This has been the subject of a searing parody on SNL where the Chinese President embarasses our President over whether Barack really thinks the Chinese are foolish enough to believe we will pay off our debt. 

Rogers point is that somewhere in the future, the world will demand a higher interest rate to continue to swallow our debt.