There's a pattern that is familiar from so many other countries that have gotten into debt problems," said Jeffrey A. Frankel, an economist at Harvard's Kennedy School of Government. "A simultaneous rise in interest rates, fall in securities prices and depreciation of the currency."
China's The Standard has published a report that may describe the event that could trigger a perfect storm. The Standard says "U.S. 'Playing with Fire' on Yuan Drive." Here are a couple quotes:
Politicians are playing with fire,'' said Ronald McKinnon, an economics professor at Stanford University in California.
Nouriel Roubini, a former adviser to treasury secretary Robert Rubin, said the United States' reliance on China to plug record US budget deficits means lawmakers risk ``biting that hand that feeds'' the economy.
Meanwhile, the social safety net for the most vulnerable has been shredded. The New York Times is also reporting that "Elderly people with low incomes may lose some of their food stamps if they sign up for the new Medicare prescription drug benefit."
I think we should just drop the elderly poor off at the White House for dinner every day.