For the last 4 years, our Federal Government has produced the four biggest deficits in history, and the estimated 2006 deficit of $423 billion is projected to be the largest of all. ↗
Unfortunately the Republican tax cut will deny important revenues to many states facing their own deficits. This will create greater pressure for higher state and local taxes. ↗
For one thing, one of the wonderful things that we now have is instead of the huge budget surpluses that President Clinton left us with, we now have these huge deficits that we're going to be facing into the future. ↗
But if they want to really think about the fiscal future of this country, then think about how we have moved from hundreds of billions of surpluses to hundreds of billions of deficits. ↗
Although economists have studied the sensitivity of import and export volumes to changes in the exchange rate, there is still much uncertainty about just how much the dollar must change to bring about any given reduction in our trade deficit. ↗
But because we in the United States finance our current account deficit by borrowing in our own currency, we can move to a more competitive dollar without the adverse effects that followed currency declines in other countries. ↗
The tea party movement and its passion arose in response to trillion dollar deficits as far as the eye can see and out of a sense that Washington is in need of dire fiscal reform. ↗
Money flows into the US, and inflates US assets, and allows the US to have a monstrous trade deficit. That means we are consuming more than we are producing. ↗
