Drinking on borrowed money

I follow Greg Pollowitz’s Twitter feed. He writes for National Review Online. Don’t tell him or anything, for that matter don’t mention it to the spouse either, but I’ve got a bit of a crush on Greg. He’s clever and capable and plays in politics for a living; I mean, what’s not to like?

Tonight he offered up this one:

Here are the two links he gives. 1) The menu, and 2) the price of the wine.

I was going to pour a glass of that $4.99 Two Vines I like so much (Ray’s special!), but now I feel a little cheap. Maybe I could get a loan to better stock the cellar.

Comments

  1. Hey, the Chinese can stop loaning us drinking money any time they wish.

  2. Why would they? We’re the addicts and they’re making the decent return. Of course, if it looks like we won’t be paying those loans back as expected…

  3. J. Strupp says:

    ….then treasury yields rise, prices fall and the PRC takes multi-trilion dollar loses on their existing portfolio. The Yuan decouples from the dollar, appreciates to a point where it severly effects PRC exports and, therefor, cuts off GDP growth.

    And what do you think a long period of slow or no growth does to the PRC’s fledgling banking system? What would the social/political cost be to stalled growth in an economy accustomed to 10% GDP year over year?

    We have a captive buyer. They know it. We know it. Current accounts will be corrected over the long run. But it won’t be because we can’t pay our debt.

  4. All that because I mentioned we borrowed money from the Chinese to give them $125 wine?

  5. Is that all you were trying to say?

  6. (This comment landed on the wrong post so I’m trying again.)

    Pretty much. The classic “I’ll buy you a drink, can you spot me a $20″ routine.