[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.

[Toddsterpatriot]

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.

And the current rate on a 10 year Treasury bond is 4.71%. Scary!

When that happens all hell breaks loose.

What would happen?

The trade deficit speaks for itself. Money gone forever.

Except they reinvest those dollars in America. Are you ever going to explain how Federal deficits and trade imbalances cause inflation? Or have you realized your mistake?