On Sep 13, 2006, at 8:01 AM, Charles Brown wrote:
> IMO NF exaggerates the US budget problem.
>
> ^^^^
> CB: You're a deficit spending, Keynesian type-a-guy anyway, no ?
Doesn't matter - Max is right. The US budget deficit isn't that big a deal now. The foreign balance is much more of a problem, reflecting private, mainly household, overborrowing.
Doug
^^^^^ CB: Well, yea. I started this exchange by pointing to the deficit part of Ferguson's argument and saying it wasn't such a problem.
I think Hudson's thesis is that Japan, China etc. are financing both the balance of payment deficits and the budget deficit.