Depressing

Those who want to darken their Day should try this link which informs the current political elite for the umpteenth time that fiscal policy remains unsustainable. It is most remarkable in it comes from the Congressional Budget Office, who are tasked with informing Congress about potential tragic endings of Congressional action. It stands clear that the CBO perform as efficiently as Everyone else in warning of disaster ahead. Don't you just love the Federal Government?

The Newspapers are alive Today with the Current Accounts imbalances. Like this was a problem which only showed this morning. Many have warned of shipping all those Treasuries overseas, in exchange for Consumer Goods; Things which are not remaining as cheap as they once were. Simply put: We need those 3 million Manufacturing Jobs back! Those Jobs would have generated a probable increase of 7 million Jobs since 2000. American Consumers, though, listened to the Free Traders, who told Americans they could get something for nothing--i.e., half-Price.

Many Free Traders still don't get it. You can still find Calls for devaluation of the Dollar. They cannot understand one simple fact: if you cut the value of the Dollar in half, it is just like Tax Cuts, Profits (identical to Tax revenues) are not going to double fast enough to save the current economic positions of Those grounded in Dollar incomes. The current situation is explosive in that the Current Accounts imbalances could trigger a slide in the value of the Dollar; one that might not cease before an economic stability can be achieved. We may be looking at higher Consumer Prices joined with suppressed Labor Rolls, and a huge drop in the Dollar.

Government intervention seems hardly viable; the Federal Government being the greatest Debtor in the World, the economy producing declining Profits under this Scenario, falling Employment, with the current methods of generating Business Profits being the culprit behind the situation. The American Taxpayers may find themselves paying $7-8 in future taxes, for each dollar they saved in the Bush Tax Cuts; in a time where those dollars are just as hard to earn. lgl