July 29, 2004

The Mess that Bush Leaves

What is happening with the trade deficit? William Greider has been warning that someday the US could find itself in real trouble when foreigners no longer want to fund our debt. Today, a story in the Christian Science Monitor says that the world is losing patience with the US trade deficit.

Foreign interest in buying US stocks and bonds is slipping. May was the third consecutive month foreigners were net sellers of US stocks. Further, Japan appears not so keen on buying dollars to keep the price of the yen down, and thus help its exports be more competitive, now that the Japanese domestic economy has started to bustle. Recent monthly numbers suggest Japan, which already holds 16 percent of US Treasury bonds, is buying fewer of them.

What a mess Bush has created. It is not encouraging to read that some of the Republicans think it would be better to have Kerry win the Presidency because the next four years are going to be bad, and if someone has to raise taxes, it would be better for a Democrat to do this. That way the Republicans don't get on the bad side of the anti-tax nuts like Norquist. And it allows the them to stand back and throw darts. If that is the case, do they even deserve to be considered adults? Kerry will definitely have his work cut out for him.

Posted by Mary at July 29, 2004 03:41 PM | Economy | Technorati links |