Brahmason's Blog

If the USA continues to increase deficit ignoring that the amount of dollars in the market are overwhemly more than necessary , the world economy will simply collapse under the pressure of inflation and currency tensions , that nobody will be able to control .

The USA needs to recompose purchassing power through austerity and recovery of a GDP with much more added value ( increasing production and services in latest technologies ) , which substantially should lead into a higher average salary ( more engineers and other proffessionals in highly yielding technologies ).

Future domestic demand should be based in a wide medium class with solid incomes not being forced to exceedingly high borrowing for durable quality consumption .

Meantime austerity has to be practiced and exports on a temporary low dollar basis should be promoted .

If delaying sovereign debt maturity is necessary , "investors" should understand that it is better an option than continuing inflating the balloon which is already nearing explosion . You could always remind foreign investors that their complicity in buying american debt has been helping artificial exchange rates that favoured american imports of their otherwise not enough competitive products .

Brahmason