CRS Report for Congress
Received through the CRS Web
Order Code RL33140
Is the U.S. Trade Deficit Caused by a Global
November 4, 2005
Conventional wisedom, Ben Bernacke, and the IMF all telling Us that the Bush Spending pattern will be alright. This Author suffers from the delusion that Investment remains dependent upon Funds undrafted to some other purpose--this drafting process governed by low, real Interest rates. There is currently low Savings throughout the World, not just the United States. There is also low Investment rates throughout the World, not just the United States. There are massive Government Budget deficits throughout the World, not just the United States. Bernacke's Savings Glut does not quite fit, nor does the Conventional wisedom that Savings would be higher if Interest rates were higher. The Report makes a nice comment at the end about how most of the American Investment has been in Residential Housing, with some commentary on the uselessness of such Investment in the Productivity process of debt repayment.
Mythical Egypt (the USA) has eaten a large share of it's eight fat Cows--One could claim more than the Five scheduled for. Maybe God will provide Manna from Heaven--not wait; that is an unfunded Social weilfare program. lgl