US deficit may pose 'global risk'

[Resistance]

http://news.bbc.co.uk/2/hi/business/3377795.stm

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.

[KissMyAsscroft]

1. Buh, buh, buh....

Defecits are a good thing!!!!!!!!!!!

Right, Bush?

But hey, those millionares needed those tax cuts...

[54anickel]

2. Dang, you beat me to it. Here's another report that's a little more

in depth. Still looking to see what the foreign new reports have to say.

http://www.nytimes.com/2004/01/07/politics/07CND-FUND.html

[kalian]

3. Kinda strange....

Let's be honest here... What kind of direct impact does the US
continue to have on the world's OVERALL economy? :shrug:
Seriously now, given that the US literally does not manufacture
anything...what makes the US such an economic powerhouse? The ability
to nuke somebody?

As for the military aspects...invading third and fourth world
countries does not, IMHO, berate the US as a "world military power".
So...could somebody please tell me HOW the US's eventual economic
demise is going to harm the world overall?

[seasat]

4. How 'bout this idea.

Kalian wrote: Let's be honest here... What kind of direct impact does the US continue to have on the world's OVERALL economy?

We funnel dollars around the world?:shrug: Because of our previous manufacturing capacity, previous ingenuity, and wealth we have a lot of corporations, banks and world equity markets based here. We're kind of like the valve that all the money passes through. When I was getting my undergraduate, I remember from a labor economics course that the US economy was actually skilled labor intensive. During the early part of the century we were unskilled labor intensive. I believe we shifted rapidly through manufacturing to a service economy and are finally shifting to simply a capital directing economy. The problem is that kind of economy is not stable, at least for the average person. The only one that benefits are those at the top directing the capital flows. Of course it could be late and I could be simply postulating from my posterior. :7

[aneerkoinos]

5. This how

The only people dependent on US financial house of cards is the utterly useless vampire class around the world, the financial analysts, "investment" bankers etc representatives of "orthodox" (=19-century) economics. The people who rule the media and especially daily economic blather. It is those people are going to feel the direct impact, and I say so what! Good riddance!

[NoKingGeorge]

6. The US dollar is the reserve device of choice.

Notice that because OPEC gets their money in dollars, most of the world hoards dollars from trade. This results in the dollars not being returned to US to be 'cashed'. So more dollars can be printed to make up for the out-of-circulation hoarded dollars. So without having produced anything, we have 'value' for the notes we produce.
Now if there is more value in Euro's (like OPEC wanting to get paid in Euro's,btw: Iraq demanded this) Then the dollar free ride is transferred to the Euro and we cannot buy much less of anything we do not produce here.

[Deja Q]

7. And I fear the bubbles will start bursting shortly after 20 Jan 2005...

Especially when a Democrat is elected back in office.

Or should I have said "Democratic candidate" because the use of "Democrat" implies a right-wing freeper slur? :eyes: