IMF Researchers: US Budget Gaps Endanger Global Economy (Euro trash has a cow)

Dow Jones Newswire via Yahoo! News ^ | 1/7/2004 | Joseph Rebello

[optik_b]

"This should solve the trade deficit just fine."

Why would it solve the trade deficit when the countries we have the largest trade deficit with (China) is not affected by the dollars fast slide against the Euro. Americans' appetite for imports is growing at a record pace and the rush to outsource and manufacture products outside the USA in china and the far east is only accelerating.

[Fenris6]

"Statistically speaking the odds"

That makes no sense. How can you have stats on what is a surprise? I live in the DC area, work a block away from the Captiol, so I guess my sense of the threat is somewhat exagerated.

FWIW, my point was that when at war, you focus on survival and defeating the threat - you can always pay off the US debt later. A balanced budget means nothing to a country with cities in irradiated ruin.

[D Rider]

I was specifically sspeaking of our deficit with Europe. Western Europe was the context.

[theFIRMbss]

>IMF Researchers: US Budget Gaps Endanger Global Economy (Euro trash has a cow)

Why does anyone care what Tom Cruise says about the economy?!

[optik_b]

"That makes no sense."

Of course it makes no sense if you are acting purely on some emotional fear that you are not going to be "ALIVE when these bills come due." Start using logic. I work in downtown DC too, but I don't live in fear. It's like the foolish idiots who are afraid to travel on airplanes because they think they might die in a crash, but don't think twice about getting in their car and driving home when there are drunk drivers/people falling asleep/senile old people all over the roads.

"FWIW, my point was that when at war, you focus on survival and defeating the threat - you can always pay off the US debt later. A balanced budget means nothing to a country with cities in irradiated ruin."

You are correct that the primary purpose of the government is to defend the country. Part of doing that includes the long term economic capability to fund a defense. Massive budget spending and huge federal giveaways such as Prescription drugs, farm bills, etc are not goign to achieve that goal.

[ruppertdog]

You are correct. Poorly managed debt with undermine the creditworthyness of the whole country. The government tries to fix the currency and speculators will call the bluff and use the arbitrage situation to their advantage. Soros did this in Britain and made billions in one day.

Some see a lower dollar as a good thing because it restores competitive balance to domestic producers by making their goods and services more affordable overseas. It is a mixed bag. Personally, my biggest expense is energy costs. I think technological advances in this area and other areas will keep us competitive with a very high standard of living. Our innovative nature will keep us on top.

[HostileTerritory]

So, do you feel any less safe because that HOOTERS in Shreveport didn't get federal money?

[HostileTerritory]

Our merchandise trade with Europe is a relatively minor part of the international economy--and not at all a source of concern for the stability of the system.