The blog of the week, Peak Energy has this to say about the current federal state of financial woe.
One of the forces pushing oil prices lower in recent months (besides the slowing world economy and the demand destruction caused by the earlier surge in prices) has been the rising US dollar. This trend may be nearing an end, as the Chinese look to diversify their US$1.809 trillion (hey - they could pay for half the Iraq war with that stash !) away from the dollar - China may cut its dollar holdings - CICC.
Apparently China was a big investor of Fannie Mae and Freddie Mac – and this must be why the US government had no choice but to bail out the two failed financial institutions. Pretty scary facts about our shark loan based economy and how deregulation is a very bad idea and a mess that the GOP is almost one hundred percent responsible for creating with their corporate consideration only policies. All the horrible scenarios of a banana Republic under extreme Bushism is how blatant dishonesty can and might well lead to national federal bankruptcy.