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

To: mistermj who wrote (174304)	11/5/2005 6:11:31 PM
From: neolib	Read Replies (1) \| Respond to of 281500

The defecits are so misunderstood. They said all the same things during the Reagan years. They were wrong then...and they are wrong now. So say people with interest only real estate loans. It can work, provided the universe is expanding. A longish contraction wrecks havoc with such an approach. Similarly, deficits are ok if the population and economy keep expanding nicely. If they don't for whatever reason, the Piper comes tooting for the lemmings. During Reagan's reign, it was Japan Inc that looked like a potential problem for the USA, but it only half our size. Now it is China & India. Combined they are about 8x our size in population. Its hard to predict the future, hence some fiscal cushion might be nice.