If US Catches a ‘Cold’ it is definitely a ‘Pneumonia’ Situation for Sri Lanka. I’m talking economics now for a change. US is dependant on the outside world mainly for two things. First they are very dependant on Asia for Debt. US Citizens Save almost zero but are spending big time. This is how the US consumer is seen as a Economic Growth engine for Asian economies due to the buying capacity. They finance this larger than life spending by being in debt, everything from Real Estate to Cars, to 50Inch LCD TVs. How long they can afford to do this, no one knows. Japan and China holds large stakes of US treasury bonds (closer or more than a Trillion $s.). China wants US consumers to consume and US wants Chineese money to consume. The System is something like this.

Then, US wants oil, and they wants lots of that. US military is all but a load of metal if not for fuel. US has to therefore ensure a smooth supply of oil to keep its economy running. This is what you call a US interest. Now Venizuela is not so friendly with US and Nigeria is slowly but surely is going into a turmoil with sporadic disrupts with its oil production. Iran looks like a Volcanoe.

If for some reason Chineese stops investing in US Treasury Bonds! Or the oil supplies to US is disrupted for sometime. US might even go into a recession. I think from these two scenarios the latter looks more and more probable. Read this for a better idea. Also take some time looking at these unfolding trends and these at Google news also.

Finally a US recession will be a depression for us. US Consumers would be hard hit. Considering the fact that  our exports would be hit. So, millions of Sri Lankans, Vietnamese, Bangladeshis, Chineese and of course lots of Indian Software Engineers will face extinction.

We better watch out, its not only LTTE planes comming our way…………………..

We are Global Citizens afterall…………