Economists say that the recent U.S. Housing Bubble, in which millions of Americans purchased homes they could not afford, was financed primarily by US deficit dollars, made available from Chinese investors. Now, as millions of those homes lie vacant, through foreclosure, as the mortgage crisis worsens, Chinese investors are beginning to demand their money back.
And these Chinese investors, from a country densely pack with 1.3 billion people, are finding Americas spacial suburban residential lots, a delightful prize, rewarding their investment efforts.
Harvard Professor of Political Science, Barney Hampton, observed, the US is no longer a truly sovereign nation. As Americans have chosen to live beyond their means, and allow foreign investors to foot the bill for our excessive life-style, it becomes impossible for law-makers to ignore demands of those countries which own our debt, and could chose to sell off our government bonds at any time.
He further pointed out, that George Bush's supposed "economic miracle" was due in large part to the pumping of millions of deficit dollars into the economy, through the Fed's availability of no-interest loans.
Economists say that, during Bush's second term, fully 25% of the economy (as measured by consumer spending) was due to the housing bubble....the salaries of construction workers building new homes, optimistic home-owners, and flippers, buying second and third homes, with no-interest adjustable rate mortgages, and home owners taking out second mortgages on their homes to pay for trips to Hawaii, and to buy expensive Christmas gifts.
In addition, Bush's pumping of billions of dollars into the economy, through "the most reckless spending spree in the history of the world" created the mirage of a vibrant economy, whereas the underlying fundamentals of the Bush economy, were actually that of the complete disaster... which we are now finally starting to see emerge... with full vengance
Editors note: Evan Essence received his Masters Degree in Journalism (2003), and his PhD in Political Science (2004) from House-of-Spam Internet Marketing