bearze34 said:
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Wow, why am I not surprised that you would cut the Dems some slack? You are an economist, eh? Then, Mr. Economist, why don't you explain the difference between the raw number as pertains to our deficit as opposed to the % of the total budget and what that means and compare that to the deficits of the 80's, which was also supposed to be the downfall of our society as we knew it. Then, why don't you explain how higher interest rates actually increases foreign investment and how that affects our trade imbalance. Explain to us the ramifications of the "weak dollar" at home and abroad and how that ties into the deficit and the prices of imported goods as opposed to goods made here. Don't just make dubious statements and then not back them up. Educate us so that we may understand how the evil Mr. Bush has sent us on the path to sure ruin.
Here u go fuck nuts.....and please read past chapter 3 in your econ 101 macro econ text.
US deficit may pose 'global risk'
Excessive fiscal deficits in the US could hurt the long-term sustainability of the American and global economies, the International Monetary Fund warned.
Recession, tax cuts and high spending for the war on terrorism have resulted in large deficits, the IMF said.
That could place upward pressure on interest rates, and pose risks for the US economy and rest of the world.
IMF Deputy director Charles Collyns, said international investors could also lose confidence in the dollar.
That, he said, could force them to consider investing elsewhere.
'Adverse consequences'
Noting the dollar's recent slide against the euro, UK pound, and yen, the IMF said an unrestrained drop could have serious consequences at home and abroad.
The IMF report said the dollar has been affected by the mushrooming US current account and budget deficits.
"This trend (of deficits) is likely to continue to put pressure on the US dollar, particularly because the current account deficit increasingly reflects low saving rather than high investment.
"Although the dollar's adjustment could occur gradually over an extended period, the possible global risks of a disorderly exchange rate adjustment, especially to financial markets, cannot be ignored," the IMF said.
"Episodes of rapid dollar adjustments failed to inflict significant damage in the past, but with US net external debt at record levels, an abrupt weakening of investor sentiments vis-a-vis the dollar could possibly lead to adverse consequences both domestically and abroad."
It also said the deficits could deter private investment within the US, impede long-term productivity growth, and endanger the vitality of social security and Medicare programs.