Archives - Economics: Page 25
Author: amparo enriquez (Sat Dec 10, 2005 3:31 am)
Title: U.S. Deficit
The United States trace deficit is close to 788 billion dollars for 2005, while the fiscal deficit is also pretty large. Amazingly enough the dollar has recovered during the second half of the year.
Although the deficits appears not to matter, they actually do. At present, we have been able to pay for them mostly through American companies’ repatriation of hundreds of billions of dollars from abroad, however this flow of cash will soon stop because it was valid only during 2005 due to a one time tax discount. The other important form of paying for our deficits is by borrowing thru sales of Treasury notes and other American assets mostly to Asian countries such as China and Japan (above a trillion dollars a year).
Surviving economically through borrowing is a not good idea, sooner or latter our lenders will stop investing on us due to our very large debt.
Congress should avoid more tax cuts and ought to look for strategies to reduce the trade gap, a great annual financial deficit and the resultant accumulated debt could become dangerous at some point not too far away in time.
I agree that our debt has grown rather exponentially in the last few years. We cannot collect debt at such a quickening pace and expect to remain powerful in the world's economy. The Bush Administration has done nothing to mend the economic inconsistencies that abound. Instead, in a vain attempt at raising public approval, they have insisted upon tax cuts. The situation will not improve until a new administration takes the initiative to make changes.
Wait--what about the sticker on the back of your car? I agree with you though.
As someone who follows politics from both conservative and liberal outlets, I can tell you that I don't trust anyone who agrees with every single move this administration has made. Mistakes are a fact of life, even for the president of the United States. The trick is to sift through the political garbage that the mainstream media feeds this country, then realize it might not even be half of the truth.
I agree heartily with the "sorting" concept. I can tell you this: My girlfriend used to work at TMH in the psych ward. She got several very famous patients that she (foolishly) told me about. While the news did report that they were ill, the stories were TOTAL BULLSHIT. I'm talking completely made up. But because they were famous they got other people to cover for them and the media bought the bullshit and then spread it on.
I don't trust anything I can't see for myself. That's why I don't believe in any planets past Saturn. Or squid.
Well I assume you have used a telescope in the past to view Saturn then? It is possible to view Uranus and Neptune with an amateur telescope As for the squid, I agree, they're made up, so are whales (with the exception of Shamu, the killer whale).