C. Diaz-Alvarez wrote:
I don't see how else this non-saving, non-manufacturing cauntry
>can ever even begin to service its foreign debt.
It does every day, though, doesn't it? How much of a currency devaluation has to occur before the U.S. can't service its debt? When will the US government start being unable to write the checks?
It seems to me that we have to re-think our equillibria here. The U.S. economy has supported almost fanatic borrowing very easily so far with government deficits (if not debt) shrinking (or at least slowing their growth) even as trace deficits balloon. I think it must be that debt is more a force for economic good than we realize.
peace