Next Up, China Withdraws

--- 2008-09-22 ---

My guess would be that the next phase in the great dissolution involves China withdrawing its wealth. It may be out of real need, or it may be out of fear - most likely a combination of both. Now, I don't think they would kick us while we're down, but they'll probably start tapping us softly and incessantly on our shins as we try to stand up again - which will probably occur over the course of several years. There is just so much to withdraw that it necessarily will have to be spread out over many years. Such a withdrawal would likely create a drag on the US economy, casting a pall over the best efforts to solidify the fundamentals.