[Toddsterpatriot]

You have to fund the deficits, no matter how high the interest rate you have to provide to encourage some one to purchase the securities.

Make sure you differentiate between the trade and budget deficit. The budget deficit is shrinking, so where is the pressure to raise rates?

And the trade imbalances, money sucked right out of your economy that isn’t coming back.

That money doesn't come back? Do the foreign dollar holders put it under their mattress?

[WILLIALAL]

The budget deficit is a problem, because it has to be funded by someone, no matter what rate of return you have to pay them. Sure they hold onto our dollars, for now, but look at how weak our dollar has become. At some point they are not going to want to hold our dollars, and they will dump them in return for a safer investment euros maybe. When that happens all hell breaks loose. We would have to offer extremely high rates to encourage someone to purchase our debt. There are no free lunches. The trade deficit speaks for itself. Money gone forever.