Despite the enormous trade and budget deficits, the dollar and the financial markets hold up like new suspenders. Consumers keep on buying and piling up fresh debt. Credit expansion grows a trillion a year. Corporations run up record debt to finance mergers, acquisitions and stock repurchases while neglecting capital investments. The stock market pays off better than production.
Speculators rack up big profits on virtually every super-leveraged gamble under the sun.
It appears the U.S. has somehow managed to repeal the laws of economics. Years ago our spending sins would have demolished the dollar, beggared the consumer, squeezed the government and horse-collared speculators. America has the equivalent of several rich uncles who give us all the money we need. Japan and the Asian tigers finance our bad habits. They loan us the money to cover our deficits.