I feel bad for the people that can't read franklin's posts and mentally call ******** on almost every point.
The key point that he made that should be completely disregarded is that capital inflows makes up for lost jobs. It doesn't. That's one of the biggest reasons we are in the current position that we are. The goal in trade is always to get as close to equilibrium as you can. If you can run surplus, even better. But all capital inflows do is lead to more servitude. It's debt. China needs us only on account of faster growth. If they stopped trading with the US completely and actually started consuming their own production, they would still grow at a healthy rate, while the US economy would completely crash. The US can't win this war. The economy switched from creating things that matter to things that don't matter, and the transition back would take decades. Look at what is defined as "output" now in the US. You will laugh your *** off. Just because they are able to get away with it at the moment through pump and dump scams(for that is all QE2 is - banksters making more money at the behest of the taxpayer), doesn't mean it will work tomorrow. It's bad economics, and you always get punished for bad economics. The fact that we are still floating, only means we are going to pay a bigger price when **** hits the fan.
Why do you think all of these CEOs met with Barak on the 15th of December? They are trying to pull their money in their offshore accounts back into the United States as close to tax free as possible so they can buy more of our property when the economy crashes. QE is just buying them time. You live in a fascist world folks, the sooner you admit it the better.
Multi-lateral default and currency devaluation is our future. Anybody that tells you otherwise is lying.