US Debt Jolts World Markets

U.S. economic collapse is inevitable when we function by borrowing from foreigners. It is the equivalent of gambler going to Las Vegas by taking money from the savings account or loan shark:

Over the past six years, Chinese central bankers, French pension-fund managers, and staid German bankers have been the piggy bank for America's housing boom.

In that time, foreign loans to help Americans get mortgages have quadrupled to nearly $1 trillion.

That's one reason soaring foreclosure rates in the US and a sharp slump in the housing market have rattled traders from Frankfurt au Main in Germany to Pitt Street in Sydney, Australia. The prospect of large losses has caused stock markets to tumble worldwide. And central banks have injected billions of dollars to prevent a credit crunch from becoming a financial rout.