60 Billion. IN ONE MONTH!!!!!!!!

[luckydog71]

The trade deficit for the month of November hit 60 Billion. IN ONE MONTH!!!!!!!! What the hell are we thinking???????

The dollar fell on the news a few days ago….I read it was foreigners who rushed in to prop up the US buck…hmmmmmmmmm

So our debt is out of control…..our deficit is out of control….Mr. Bush…please focus on domestic issues and get this fixed……either turn this around or I swear I will vote Democrat during the mid-term election…

Those Canadian socialist are looking pretty good with their budget surplus and trade surplus…

 

[BushPilot]

One of the biggest stereotypes in western politics is that left wing parties create deficits and debt while right wing parties balance budgets and fight debt. If you look at the last twenty years in US federal politics, and the last ten in BC politics, strangely, it was the Clinton democrats who created surpluses while Reagan and the Bushes piled on the debt for future generations. In BC, the NDP created the balanced budget legislation (albeit in response to their own fudge-it budget fiasco), while Campbell's Liberals ran record deficits until this past year. Methinks the world has been turned on its ass!

 

[BushPilot]

But, if I'm not wrong, budget deficit and trade deficit are too entirely different things with two entirely different sets of consequences. Perhaps somone more adroit on such things could clarify the differences more.

 

[HankQuinlan]

I beg to differ, but a responsible government doesn't spend more than it brings in by taxation. The reason the US dollar is falling is because of their huge debt load, and their low taxation levels don't allow them to meet the money they spend. If the US were responsible, they would raise their taxes (or not spend so much).

 

[hornydude]

Mike Hawk: EXACTLY!

The surplus is built on the back of the over-burdened Canadian taxpayer. The trade surplus is the result of a low loonie (now watch it go *poof* with the stronger loonie).

What good is a surplus if it does more harm than good? Balanced budgets with low taxes and a strong economy, with a small surplus for contingency (read planning for the next recession) is good, though...but this is not what we have here.

Of course debt and deficit is bad as it pushes up interest rates, but the key is balance...

 

[timec]

The trade deficit for the month of November hit 60 Billion. IN ONE MONTH!!!!!!!! What the hell are we thinking???????

The dollar fell on the news a few days ago….I read it was foreigners who rushed in to prop up the US buck…hmmmmmmmmm

So our debt is out of control…..our deficit is out of control….Mr. Bush…please focus on domestic issues and get this fixed……either turn this around or I swear I will vote Democrat during the mid-term election…

Those Canadian socialist are looking pretty good with their budget surplus and trade surplus…

Only in America? Record federal debt. Record foreign debt. Record budget deficits. Record trade deficits. But luckydog, socialist Canada? You funny guy.

The US $4.3 trillion federal debt --- just what did those U.S. Government Accountability Office (GAO) guys say bout it? Mike Hawk – sumthin about tax reform in here

GAO’s fiscal policy simulations illustrate that the fiscal policies in place today—absent substantive entitlement reform or unprecedented changes in tax and/or spending policies—will result in large, escalating, and persistent deficits that are economically unsustainable over the long term. Without reform, known demographic trends, rising health care costs, and projected growth in federal spending for Social Security, Medicare, and Medicaid will result in massive fiscal pressures that, if not effectively addressed, could cripple the economy, threaten our national security, and adversely affect the quality of life of Americans in the future.

Trade deficit? --- a record $165 billion in the third quarter of 2004, with imports exceeded exports by 54 percent. --- that’s a mere $665 billion in additional foreign debt every year, setting the U.S. economic security in the hands of foreigners. Uhhh, luckydog, foreigners – oh, my!

Only in America - not Canada – thank you very much.

.

 

[drromance]

One of these days you will all wake up to the reality that governments of all kinds are totally useless when it come to runnin an economy, there is not one in history that could do the job right and the reasons are so ffiing simple that its unbelievable that we have not caught on yet.....
It is a power struggle, governments needs to get elected, (unless dictatorship) and how do they do that?? why they buy votes by promising what the majority and some of the minority want in a government and that means collecting money and wasting it because most politicians are not business orientated or have no idea of profit motive , also, they depend on civil servants to come up with all kinds of goofy ideas to meet program objectives.
Aayan Rand should be mandatory reading and acceptance for all politicans before they run for election and if the screw up, fire them and no benifits.

 

[luckydog71]

Amen, Dr R.

Less government is better government.

Government has grown to a size that was never envisioned by our founders (nor yours) and the people who are responsible for this are the citizens of the country.

They buy my vote with my money, which is outrageous.

I sell them my vote and they use my money, which is ignorant.

 

[fun-time-guy]

Mike Hawk: EXACTLY!

The surplus is built on the back of the over-burdened Canadian taxpayer. The trade surplus is the result of a low loonie (now watch it go *poof* with the stronger loonie).

What good is a surplus if it does more harm than good? Balanced budgets with low taxes and a strong economy, with a small surplus for contingency (read planning for the next recession) is good, though...but this is not what we have here.

Of course debt and deficit is bad as it pushes up interest rates, but the key is balance...

I know this is going to get me in trouble, but.............

Without the government collecting surplus taxes, exactly how would we expect to pay down our national debt. Really. I get just as pissed off as anyone about any government wasting our money but if there are for whatever reason additional funds at the end of the fiscal year to pay down the debt - GREAT!!!!

 

[Maury Beniowski]

The trade surplus is the result of a low loonie (now watch it go *poof* with the stronger loonie).

I think you need to do a little research before you make this assertion. Even when the dollar was worth more than the US greenback, we enjoyed a trade surplus with the US. The reason? We are a resource based economy, plain and simple. We fuel the American economic engine by supplying them with oil, minerals, agricultural and manufactured goods - like car parts. 80% of our trade is done with the US, and they are drawing on us for their raw materials.

Nations like Germany & Japan have gone to war in the past to secure the resources their labour-intensive economies needed to keep their factories going. Only the US has that neighbourly security, and we are it. However, in the past, as the US economy went, so did we. So, this is the reason we have been cosy'ing up to China lately, as they are hungry for our coal, wood products and almost anything else we can provide them. That's why we haven't really been deeply hurt by the softwood lumber tariffs imposed by the US; our wood's been going sideways.

The reason why the US economy is in the tank? It costs a lot of money to police this planet, and with the War on Terror and trying to win the Peace in Iraq having drained so much money from the economy, they are left with the only "politically palatable" alternative: Print more Money - the perfect recipe for a declining dollar.

 

[BC visitor]

….Mr. Bush…please focus on domestic issues and get this fixed……

Are you sure you want him to focus on this?

Think about that happens when he does focus on things... Terrorism? Iraq? WMD?

Maybe ignoring it is safer for all of us.

 

[qwerty]

Hey lucky, as an american, how much did Bush's tax cuts affect you in direct savings, hundreds, thousands??? I know no-one likes to 'give' money to the govn't, but do you think that money in your hand now is better for you and your country in the long run?

(believe it or not, I'm actually looking for your honest opinion, not trying to start something)

 

[luckydog71]

Qwerty – to be honest, if I had not heard in the press that I got a tax cut I would not have know. In comparison to my total tax liability it was insignificant.

However the other part of your question is more philosophical and in my mind defines the difference between a liberal and a conservative. “do you think that money in your hand now is better for you and your country in the long run?”. The answer is yes I do.

Governments have shown they are not capable of making sound economic decisions. They brag about how much Federal money they return to their state. THAT IS NOT FEDERAL MONEY. That is money that came from my pocket. The more they have the more they spend.

My biggest fear is that the US will follow the social engineering policies implemented by Canada and it will result in US reach tax rates that Canadians now pay. (and before you jump on me I do not care if Canada continues these policies or not. I just do not want the US to implement similar policies).

I want a self financed Social Security system
I want a simplified tax code that everyone pays their share. (Almost 50% of all adult Americans pay no federal income tax).
I want politicians to be accountable for spending my money and getting value for the money they spend.

(Would you like to have some of the stuff I am smoking?)

I hate the fact that we have a high trade deficit and we have a huge budget deficit and a huge debt. The only positive I can find is the ability to borrow from foreigners is nearing its capacity and when it does we will see a sea change. To run a 60 BILLION dollar trade deficit means someone needs to loan the US 60 BILLION dollars each month. Once foreign lenders pull back, that will leave only Americans to finance this ever increasing debt load. Watch the shit hit the fan when we reach that point.

 

[luckydog71]

Re: Re: 60 Billion. IN ONE MONTH!!!!!!!!

Are you sure you want him to focus on this?

Think about that happens when he does focus on things... Terrorism? Iraq? WMD?

Maybe ignoring it is safer for all of us.

Actually Blue guy I do. See I believe Bush has done a great job on terrorism, Iraq and WMD. I wish he would focus his attention of domestic issues and if he could achieve similar success I would be ecstatic.

Lately his policy speeches have been on domestic issues, Social Security, taxes, medical malpractice and we also know supreme court appointments are coming soon.

He has 2 years. By the mid term election I will make a decision on congress and senate candidates.

If Bush has not made significant progress in these areas then I will vote for Democrat candidates. If he has then I will split my vote. I can not see any scenario where I would vote all Republican, they have too much power as it is.

 

[BC visitor]

Lucky dog -

I personally think my tax dollars have been squandered in the first term.

I don't really feel any safer from terrorists than I did pre 9/11. I think what the administration is doing is too reactive and not nearly proactive enough. The TSA spends 85% of its budget on Airport security and the remaining 15% on all the other modes of transportation to include Port security. Terrorists are not going to fly planes into buildings again, they are going to bring a 40' container filled with chemical weapons into LA or Long beach and then open the valves and take a slow drive up the 405.

But I think it is also obvious we will disagree and I hope both of us don't want to start the "war of words" that will come if we continue down this road with niether of us changing the others opinion.

I do want to say I for one want to thank you for your objectivity in the 2006 elections. I also think it is long over due to start to focus on domestic issues.

My comment was more off the cuff and flip than of real substance.

 

[dittman]

1. the defiecit is actully lower percentage wise to gdp then under the clinton years.

2 most economist think its good that the $ has gone down in value compared to most other major currencies.

3. the bad part is that japans and chinas central bank has intervined to keep their currencies artificially low. that is why there is no pain or outcry about inflation. goods from china and japan remain relatively cheap.

4. anyone that beleaves that the u.s ran a budget surplus please raise their hands. Govt. accountants would make arthur anderson proud.

 

[Cinnamon Girl]

global currency

Who & how is it determined how much is printed & where it is circulated?

economically challenged in understanding the origin, Gina

 

[luckydog71]

Someone here said that Bush means what he says and follows through.

That was me, LD

Bush has been a supporter of tax cuts for the wealthy (he believes they stimulate the economy.)

Your spin. Bush believes in tax cuts for taxpayers. The wealthy gets the biggest share in dollars because they pay the most. Poor people don’t pay taxes.

Bush has been a supporter of the right of companies to outsource and move jobs overseas - governments shoudln't interfere in business after all.

Correct, it is called a global economy

Bush has been a supporter of massive military spending in terms of program acquisitions. An example being the missile defense program.

Correct

The US is sufferng because those companies that are left increasingly depend on government subsidies in terms of defense contracts. This promotes waste and inefficient practices, and the products that are developed are not easily salable or transferable, either because of the nature of the product or because of security restrictions.

Correct. Let’s stop subsidizing poorly run businesses. The airline industry is the greatest example (in both our countries). Let the United’s Delta’s, Air Canada’s go broke. Let well run companies like Southwest, West Jet thrive.

He could remove favoured trading status from China, which after all is where all the American jobs are going, and is a country that many on this board has pointed out, does not share the values and ideals of freedom and democracy that the US holds so dear. But he has said he won't do that.

Bush is right. We need to strength ties to China, not weaken them.

Bush says what he means and follows through. Those who voted for him have no grounds for complaint. He's doing what he said he would and following through. As we hear time and time again, 52% of the people voted for him, that must mean that all of america approves of his policies, even the 49% that voted against him.

So, suck it up and quit complaining.

Not complaining. I want him to do for our domestic situation what he did for our foreign policy. For a dumb guy that in 2000 could not name the leader of some minuscule country, he has come along way.

After all, eventually most Americans won't have enough money to buy anything and then the trade deficit will level out

When foreigners stop lending the US money we will not be able to finance the 60 billion a month in trade deficit. Those lenders have a major problem. If they stop lending the US money then their own exports will drop and without the ability to import raw materials our ability to generate revenue will slow down. Then we won’t be able to repay the debt we owe them. Sounds to me like they have a bigger problem than we do.

Dive!!!! Dive!!!! Dive!!!

 

[BC visitor]

Just a couple of comments:

What do you mean the US has nothing to export? Why, we have things like Cadillac Escalades and Maytag Neptune washer & dryers. Doesn't every one in the world want one of those? No? Why, thats un-American of them!

Speaking of China, can we get China's largest customer, Wal-Mart, added to the axis of evil? I can just see it... a picture of Kim Jong Il, Saddam Hussein & Sam Walton.

 

[timec]

luckydog posted it
Government has grown to a size that was never envisioned by our founders (nor yours) and the people who are responsible for this are the citizens of the country.

They buy my vote with my money, which is outrageous.

I sell them my vote and they use my money, which is ignorant.

I want politicians to be accountable for spending my money and getting value for the money they spend.

luckydog, the $782 Billion dollar 2004 U.S. Federal Discretionary Budget – representing your federally taxed money from your paycheck and how your elected officials chose to spend it --- this is excluding mandatory expenditures (e.g. social security, medicare) which your Congress has no control over.

An interesting split --- $399 Billion dollars for Military spending vs. $383 Billion dollars for Non-Military spending.

luckydog, is this the too big government you speak of?

More than half the budget for Military spending Hey, there's a way to cut your taxes right there

.