It's a very high risk game the US is playing, and the tax cuts etc are certainly not doing the most to enhance economic growth, the benefits from them are only really being felt by the most wealthy Americans from what I've seen, most are seeing very little benefits. The main assistance comes in making US exports cheaper with the very weak dollar. Downside to this plan is it makes buying the dollar less attractive. To sustain the current debt the US needs billions each day - they aren't too far away from not getting enough due to the low interest rates which are the other big assist to the US economy.
You can't just magic up all that the rest of the world owe you (thought you were Canadian?) if the rest of the world demanded what the US owes them the US would immediately go bankrupt, it's the biggest borrower in the world, just not as felt because it has such a large GDP - in the 80s when Reagan was running up the deficit it wasn't too bad because the US was a creditor to the rest of the world, the USA is now in debt to the rest of the world to the tune of $3 trillion. This is what happens from spending too much and taxing too little, having an economic policy to keep donors and voters happy rather than running an economy responsibly.
I'm sure those extra jobs will be a great comfort to the 1/4 million Americans who are about to run out of unemployment benefit in the next month or so.
Ah by the way:
Quote:
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While job growth appears to picking up, January's report was actually below expectaions. Economists had been forecasting the U.S. economy would add anywhere from 150,000 to 180,000 new positions.
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You also forgot that this year's deficit doesn't include any of the costs of Iraq or Afghanistan, and has various other omissions as well. There's also that most economists consider the deficit reduction plan to be pure fiction, and the budget such as it is to have dubious maths in its' predictions. Then there's that those jobs created are of lower average salary than the jobs they are replacing.
Ah URLS:
http://biz.yahoo.com/bizwk/040203/pi...6_pi031_1.html
http://quote.bloomberg.com/apps/news...d=aoomu3l_aYQ0
http://www.busrep.co.za/index.php?fS...ticleId=340111
http://www.j-bradford-delong.net/mov...es/002242.html
http://www.jubileeplus.org/analysis/...tal_flight.htm
Most interesting:
http://www.globalpolicy.org/socecon/...8worrisome.htm
http://uk.biz.yahoo.com/031221/80/ehl53.html
So this is financial prudence. Wonder what the plan is if the USA gets into real trouble, probably to declare war on the major creditors to it. Anything to preserve US dominance innit:
http://www.newamericancentury.org/iraqclintonletter.htm
http://www.newamericancentury.org/st...principles.htm