On Thu, Feb 12, 2009 at 10:46 AM, Gruss wrote: > > > The short-answer is because there are few countries and the US dollar > anchors the financial system and the reason for the financial system > is to match borrowers and savers in a market that ensures the saver's > money is put to the best use.
The US dollar anchors the financial system - until it doesn't. If we keep borrowing money from the rest of the world, sooner or later the bill is going to come due and we are not going to be able to pay it unless we inflate the currency. On the issue of repaying the debt, raising tax rates will not lead to higher tax revenues, it just doesn't work that way. People hide money, companies look elsewhere for more tax-friendly places to do business, and the result is lower economic activity and lower tax revenues. And cutting spending? Are you kidding? I'd like to see that, but we're headed entirely in the other direction with Social Security and Medicare alone. Congress is going to have to reform those programs if we are to have any hope of not defaulting. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:288274 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
