Denninger says, We Got Problems right here in Sold-Down-the-River City.
And then they take away our AAA debt rating so it will increase the cost of servicing the debt -- assuming there are any takers out there.
I tend to agree with one comment on the Market Ticker that Bernanke has been trying to keep the stock markets up through the election. At some point, he has to tighten credit or see a euro buy three dollars. Even in a depressed economy we're looking at soaring commodity prices. Imagine what that's going to do to dollar-denominated oil prices. I think it was around $84 today. If it goes past $100, I'm guessing unemployment hits 12%.
I wish I knew of a "safe" investment -- unimproved land, perhaps.
The only upside is that this would make imports more expensive and encourage a surge in American manufacturing -- except for the fact that the Chinese currency is pegged to the dollar and is going down with it.