Samuelson's Words of Warning

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Paul Samuelson, the great economist and textbook author, has some ominous things to say:

Up until now, China has been willing to hold her recycled resources in the form of lowest-yield U.S. Treasury bills. That's still good news. But almost certainly it cannot and will not last.

Some day -- maybe even soon -- China will turn pessimistic on the U.S. dollar. That means lethal troubles for the future U.S. economy. When a disorderly run against the dollar occurs, I believe a truly global financial panic is to be feared.

Greg Mankiw's Blog: Samuelson's Words of Warning

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