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Politics : Foreign Affairs Discussion Group
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To: Hawkmoon who wrote (15258)1/2/2002 8:33:35 AM
From: Bilow  Read Replies (1) of 281500
 
Hi Hawkmoon; Re: "Btw, isn't it rather difficult to call the US a "huge debtor" when we have some $4 Trillion in cash CURRENTLY sitting in money markets looking for a home in either equities or bonds? Sure we have debt. But our national debt is one of the most managable around the world... And our personal debt generally goes into things like real-estate, cars, and then credit cards."

From the point of view of the exchange rate (and therefore "foreign affairs"), the problem is that there is too much US dollars held overseas. Since these are "monetized" by the Federal Reserve, they don't show up as debt by any other entity in the US. In other words, the problem is neither "national debt", "personal debt", nor "business debt". It's currency debt.

Take a look at these sequences:
stls.frb.org
stls.frb.org

That's right, the US balance of payment deficit was $29.433 billion just in the month of October. We can probably afford our share ($100 each?), but these are big numbers, as far as balance of payments deficit go, and these big numbers have been going on for a very long time. If you're interested in further, here's a very useful page of more statistics on US balance of payments &c:
stls.frb.org

Tremble any?

-- Carl
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