For years people were speaking about huge deficits and collapsing financial markets because of it. Well guess what, they were right and we are here. The systematic process of buying products from asia to send them our money so they can buy and finance our debt has come to a halt. The capital markets are so insolvent that the banks can't even mark to market their toxic assets because there is no longer a market so how can you mark. For years we told people dollar had to be devalued just to be in a position to pay down debt due to revenue taxation avaliable to gov't based on gdp growth and the true value of the dollar is a dime. Mexico, Brazil, Argentina, Russia have all devalued their currency in past 20 years and American Dollar has now come. Nobody knows what will happen because at this time in history nothing of this magnitude has ever happened before so only time will tell and evolution will solve.
