Deficitis Matter
"The concern about U.S. fiscal imbalances is shared as well by most of the American business leaders and economists I talked to here. Indeed, it's hard to find anyone who isn't concerned, except the eternal optimists who inhabit the White House.
The basic analysis runs like this: Thanks to aggressive fiscal and monetary stimulus, the United States is consuming about 6 percent more than it produces, resulting in a $600 billion trade deficit last year. To finance this extravagant overconsumption, America is in effect selling off claims on its future income, in the form of U.S. Treasury securities that are purchased by the" rest of the world.
Editorial Link: Here
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I'll gladly pay you Tuesday for a hamburger today.
"The concern about U.S. fiscal imbalances is shared as well by most of the American business leaders and economists I talked to here. Indeed, it's hard to find anyone who isn't concerned, except the eternal optimists who inhabit the White House.
The basic analysis runs like this: Thanks to aggressive fiscal and monetary stimulus, the United States is consuming about 6 percent more than it produces, resulting in a $600 billion trade deficit last year. To finance this extravagant overconsumption, America is in effect selling off claims on its future income, in the form of U.S. Treasury securities that are purchased by the" rest of the world.
Editorial Link: Here
-----
I'll gladly pay you Tuesday for a hamburger today.
posted by Mike at 9:13 AM
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