To: ex-snook
Um, his point was we are - the trade deficit is half what it was before the recession, and as a result foreigners are earning US dollars at only half the rate they were 2 years ago. Therefore they cannot finance more than about a third or a quarter of our present budget deficits, maximum.
US savers have to fund those budget deficits, or they have to be reduced, or both. The game of the US government borrowing from abroad to support US domestic spending is over.
Which to my mind is a good thing, because it wasn't sustainable in the first place...
16 posted on
12/19/2009 12:53:31 PM PST by
JasonC
To: JasonC
" US savers have to fund those budget deficits, or they have to be reduced, or both. The game of the US government borrowing from abroad to support US domestic spending is over. Which to my mind is a good thing, because it wasn't sustainable in the first place... "Time to invest in wheelbarrows.
18 posted on
12/19/2009 12:59:19 PM PST by
ex-snook
("Above all things, truth beareth away the victory.")
To: JasonC
And this is going to force a lot of pain here in the US and abroad. People have been living in denial for too long thinking you can spend hundreds of billions on a military, hundreds more on SS, hundreds more on Medicare as well as the credit card debt our government is running up.
At some point soon the choices will be reduced to guns or Grandma.
26 posted on
12/19/2009 1:29:48 PM PST by
misterrob
(A society that burdens future generations with debt can not be considered moral or just)
To: JasonC
Right you are, it is unsustainable. The whole system is about to collapse. Passing socialized health rationing is going to choke us....
We must hold the 525 representatives plus the President PERSONALLY accountable for the destruction of the United States of America.
53 posted on
12/19/2009 2:51:43 PM PST by
Shady
(The Fairness Doctrine is ANYTHING but fair!!!!)
To: JasonC
the movement from foreign treasuries to domestic holding could be quite ugly.
Higher rates,maybe sooner than expected.
59 posted on
12/19/2009 3:54:47 PM PST by
wiggen
(Never in the history of our great country have the people had less representation than they do today)
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