As we have described for several years, the U.S. economy is virtually locked into a long arc of decline. There are no politically palatable solutions to the quandary. Until Americans are ready to take their lumps and accept a steep drop in their standard of living, the U.S. government will have no leverage with the creditor nations and no ability to keep its promises. Therefore we should celebrate when China even gives our Treasury Secretary an audience.
If China does manage to topple the U.S. dollar from its perch as the international reserve currency, our economy will very likely move into free fall as decades of inflation come pouring back into the country. We will be forced to live within our means or face hyperinflation.
— John Browne, Senior Market Strategist
