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Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: Dennis O'Bell who wrote (140765)	7/18/2004 9:14:24 AM
From: Neocon	Respond to of 281500

We are bound to make reasonable predictions in dealing with financial matters, for example, in deciding whether to favor investment in stocks or bonds. Yes, we try to minimize risk, but there is always a speculative trade off if we are looking for growth as well. Accepting higher deficits in order to stimulate the economy through tax cuts is merely a particular example of assuming some risk for the sake of growth. The risk is tolerable insofar as we can assess the danger of cumulative debt annually, and adjust if need be. The free flow of capital is essential to the capitalist system. Foreign capital is not the essential issue: any capital is. After all, Mexico has trouble keeping capital belonging to its nationals invested at home, they prefer to invest across the border. Similarly, if the United States becomes unattractive as a place to invest, capital held by our citizens will flow elsewhere. So you are merely engaging in tautology: if we become a place that is unattractive for investment, we will be in trouble. Indeed.