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tw · 12-07-2004, 02:55 AM

The Economist magazine has had some articles lately about the sad state of American economic conditions. Cited as the most significant reason for this problem and one easily corrected is the Federal Deficit. US government is leaking money throughout the world by selling Treasury Bonds. One reason this problem has gotten everyone's attention is that countries such as Germany and China have decided to cut back on their T-bill purchasing.

Remember we paid very little for the liberation of Kuwait. We are throwing money at a 'we broke it' Iraq problem as if money were a grenade that solves all problems. Somebody has to pay our bills (because Cheney says deficits don't matter) - or our bills become even more expensive.

The first $trillion excess out there took about 10 years. The second $trillion has only taken 18 months. This second $trillion got the attention of our trading partners and T-bill buyers very quickly and recently.

A chart from this week's The Economist demonstrates the problem.

12-07-2004, 02:55 AM	#12
tw Read? I only know how to write. Join Date: Jan 2001 Posts: 11,933	The Economist magazine has had some articles lately about the sad state of American economic conditions. Cited as the most significant reason for this problem and one easily corrected is the Federal Deficit. US government is leaking money throughout the world by selling Treasury Bonds. One reason this problem has gotten everyone's attention is that countries such as Germany and China have decided to cut back on their T-bill purchasing. Remember we paid very little for the liberation of Kuwait. We are throwing money at a 'we broke it' Iraq problem as if money were a grenade that solves all problems. Somebody has to pay our bills (because Cheney says deficits don't matter) - or our bills become even more expensive. The first $trillion excess out there took about 10 years. The second $trillion has only taken 18 months. This second $trillion got the attention of our trading partners and T-bill buyers very quickly and recently. A chart from this week's The Economist demonstrates the problem. Attached Images Last edited by tw; 12-07-2004 at 03:05 AM.