Another reason for developing nations to withdraw support of U.S. economy

John Bolton, the U.S. Ambassador to the U.N., is a strong supporter of the U.S. position that the U.N. must "clean up its act" in administering its programs, especially in the wake of the food for oil scandal. He is standing behind this position with a veiled threat that, if changes aren't forthcoming, the U.S. will decrease its financial support of the U.N. by 50%.

What it Means:

Although the U.S. and Ambassador Bolton have a good point - the administration of the U.N. is nearly opaque - that point is lost on developing nations, who see the U.N. as a puppet of the U.S. anyway. Ambassador Bolton's hardline position is seen as a situation where, once again, the U.S. is bullying its way by using its overwhelming size...in this case, funding.

Action Steps:

Nothing to do about it immediately, but over the long term, this hardline position may continue to undercut the developing world's purchase of U.S. Treasury Bonds. Let's see how it unfolds.