About the deficit

[question everything]

In the LBN, I posted a story http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=102&topic_id=968782
that includes this sentence

"But the problem with the widening overall trade deficit is that it is sustainable only as long as foreigners are willing to lend the U.S. large amounts of money."

I used this argument, which fell on deaf ears, of course, with a RW co-worker. Actually, he outranks me so I had to be polite. But it all started, a few months ago, when he thought that we should not even have elections in the middle of the war. Oh, I replied, what about 1864 and 1994?

But I was not bad mouthing the war in Iraq. I said that it was time to bring other nations there, I mentioned that directive from the administration not to let France or Germany bid for project to rebuild. And he repeated the official line that they did not fight so should not share the spoils.

And I spoke at length about being generous, about not behaving like a Sixth grader who takes the ball and go home. About that this behavior gives the impression that it was about oil.. And then added about how much we depend on foreigners because of the deficit. That if ever they will decide to play the same game, this will plunge us into a very severe depression. But he could not even begin to comprehend what I was talking about.

And I have to wonder about all the old Republicans, those who used to be fiscal conservatives why they are quiet. Has Lou Dobbs ever touched on this?

[PSU84]

1. Foreign aid is a pittance

It totals less than $20 billion in a $2.2 trillion dollar budget. That's equivalent to $20 out of $2,200. The vast majority of our "foreign aid" is military assistance and most of it goes to 4 countries: Egypt, Israel, Colombia, and Turkey.

[question everything]

2. Not foreign aid, but the opposite

We are dependent on forefingers, rich one, to invest in our stock market, to buy government bond to so that we can support our deficit.