Keynesian Endpoint

Those familiar with economic theory have at one time or another studied the Keynesian theory of economics, and the United States is embarking on a path of uncharted waters in relation to this theory, many experts refer to this as a Keynesian Endpoint. This occurs when overextended governments refuse to float each other due to the volatility within their own economy's and as a stabilization strategy greatly reduce or refuse to purchase the debt of another nation, usually in the form of treasury's. Currently the U.S. accumulates approximately 1.6 Trillion dollars a year in debt, and only saves 500 Billion a year. These levels are unsustainable and will unquestionably result in a negative feedback loop. China is experiencing an overheated economy and has stated that in the near future U.S. Treasury purchases will be greatly reduced in an attempt to cool inflationary pressures. Foreign governments currently hold 4-Trillion dollars in U.S. debt, and we will have to turn to our central banking system for relief. Printing money will apply inflationary pressures thus making most products to expensive to purchase and consume resulting in a blowout effect. History has shown that hyper inflationary damage is systemic in nature and has brought whole nations to its knees. A third world nation effect in the U.S. would be tragic in many regards, and this we cannot afford.