Our borrowing binge continues to spin out of control. No nation can continue to borrow at these rates for long. Especially when our trade deficits is falling like a rock, thus reducing the amount of dollars that can be recycled back to our shores.
(AP) -- The Treasury Department said Friday that the budget deficit soared to $192.3 billion in March, and is near $1 trillion just halfway through the budget year, as costs of the financial bailout and recession mount.
Last month's deficit, a record for March, was significantly higher than the $150 billion that economists expected.
The deficit already totals $956.8 billion for the first six months of the budget year, also a record for that period. The Obama administration projects the deficit for the entire year will hit $1.75 trillion.
A deficit at that level would nearly quadruple the previous annual record of $454.8 billion set last year. The March deficit was four times the size of the imbalance in the same month last year.
trade deficit and recycling debt
I just mentioned that in a comment but I have never seen any in depth analysis of the "recycling" debt to China system and what their trade implosion means to that.
Such a piece of research I imagine would be a "hot" article.
In a polity that has lost its way and can no longer distinguish between value and money - what difference does the size of the deficit make? What really matters is to whom this money is flowing. Basically, it is going to the same cabals who got us in this mess to begin in the first place. The saddest thing about the current levels of US federal spending is that the funds are being allocated to perpetuate the same 'smoke-and-mirrors' system that begat this fiscal atrocity in the first place. Nationalize the banks - nationalize them now!
In China, there's no penal
In China, there's no penal distinction when it comes to white collar crime: all get executed. In China white collar banking crimes are punishable by death. Also, only Party members are allowed to be senior bank operations managers.
Our problem here is that crooks can buy their way out of harm's way. They stash funds and retire off to...wherever.
The Chinese see these as crimes against the socius.