bulldogg70 said:I do not think that the deficit, per se is because of the war with Iraq. I would also have to agree with you that we have had deficits since the beggning of the formation of this government.
However, the borrowing, unaccounted borrowing, into special military programs, military spending (contract going to haliburton, GD, Defense, etc) all in the name of the War on Terrorism is what is driving deficit spending up to new heights. The interesting thing about the deficits is the idea that China is the biggest 'buyer' [borrower] for the United States, go figure that national security bs that was told to us before. At any time the Chineese could dumb our bonds back on us and we would be moved into hyper-inflation mode around here. Of course I know China would also have ill effects, but it is a good destablization tool.
When Clinton left office we had a total spending deficit of 2.4 trillion dollars. If spending stayed the same, we would have been out of all reasonable debt by 2015. The problem now is how can you ever stop the Republicans from spending, moreso when the people, continue to believe, under the myth, that the deficit spending is coming to fight the war on terror???
A prime example of this is SSI, everyone is lead to believe that it is in deficit mode. Go look it up on the GAO, it is positve. THe problem is that the Presidents (since Nixon) have borrowed money from it and have not replaced it and so a good way to make it appear that we got rid of deficit spending is ridding ourselves of SSI . .. 3 trillion down the drain, not bad when playing with numbers
Finally I apologize if I caused any trouble on posting off of our post, new to this forum, do not know how the mistake was made.
We have a love/hate relationship with China...because as you said they use alot of their trade surplus to buy securities in the United States. They could single handedly crush the securities market;however, being that we are the biggest consumers of Chinese goods, the have nothing to gain from seeing are economy shocked. But our growing trade disparancy with China is really a huge problem. Actually our growing trade deficits are a huge problem period. You can't go on forever consuming more you produce. There is going to be a huge problem when foreign countries begin to trade securities holding for real assets..how businesses, real estate, etc. We have already seen some of this with China's attempt to buy into the U.S. oil industry and another firms failed attemted at a takeover of Maytag.
China would never do it, but it is a rare sitation where another country does "have us by the balls" so to speak. That is very unfamiliar terroritory for the U.S.
Our biggest issue is the government's ability to borrow and spend unchecked. Our country was essentially debt free until the creation of the Federal Reserve System which allowed the government to borrow from a central bank unchecked and then a create an "income" tax to pay off the debt.
I agree with you about the spending though.