>>Christian Gregory wrote:
>>
>>>As for Bergsten, I wonder about the "national savings" argument. The U.S.
>>>has been running current account deficits for 20 years, with and without a
>>>fiscal surplus, and thru the Plaza accord and the reverse Plaza. What good
>>>will savings do when the dollar tanks? Wouldn't it matter more what form
>>>they're in than that they are there?
>>
>>These guys are a bit coy about admitting it, but I bet a lot of
>>fiscally orthodox Dems - like Bergsten - wouldn't mind seeing a
>>recession harsh enough to balance the current account and cure the
>>U.S. of its profligacy. Structural adjustment comes home. They may
>>not even put it this bluntly among themselves, but it's the logical
>>outcome of their fetish for fiscal discipline.
>>
>>Doug
>
>No! We do not! "Balance the world economy up, don't balance the
>world economy down," is our mantra...
So how do you reconcile that with endless surplus-building and reductions in the federal spending share of GDP? Most Dems these days sound like what Keynes derided as "the Treasury view."
Doug