OT: Question regarding the budget deficit

And as long as I am asking I'd like to know about the trade deficit.

Can somebody tell me if there is any cause for alarm regarding these two
deficits? I ask now because of the current *flap* over how to pay for
Katrina. President Bush apparently wants to pay the costs out of
discretionary spending reductions. No tax increases. Paul Krugman (NYT
columnist and safe to say a liberal) has been in a state of near hysteria
regarding the deficits before this and I imagine this will give him
apoplexy.

OTOH, I watch the cable financial shows and some of the talking heads say
these deficits are unsupportable and others say it's not that big a
percentage of GDP, some say they'll go up and some say down. Regarding
the trade deficits America has gone from the world's largest creditor
nation to the world's largest debtor (by far) nation in my lifetime. If
it weren't for the Chinese buying our treasury paper we'd be in big
trouble, or so I've read.

I don't know much about these topics but it's always seemed to me that you
can't spend your way into oblivion without running into the wall sooner or
later, but, disaster hasn't struck yet and it's been quite a while now.
I've been reading that there's going to be a dollar crisis sooner rather
than later but I don't know where these commentators are *coming from*.

Excuse me for asking here but I've always found that a group of poker
players can answer almost any question intelligently and I can certainly
expect the entire political spectrum to be represented.



Howard Beale

"I'm mad as hell and I'm not going to take it anymore!"

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Relevant Pages

  • Re: OT: Question regarding the budget deficit
    ... Having $X income and spending $X+ can only lead to mounting debt. ... I ask now because of the current *flap* over how to pay for ... >regarding the deficits before this and I imagine this will give him ... >nation to the world's largest debtor nation in my lifetime. ...
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