How much will taxpayers shoulder?

[kandrathe]

I see. My reply was not 'philosophical correct' enough for your taste. I guess we'll have to live with that. But maybe you can explain better then, why the Chinese cannot be held responsible for this? Or do you agree with Kandrathe perhaps?

Anyway, those who like the Economic Policy Institute so much should also take a look at this, much more recent article: The false fiscal dilemma.

"Scaremongering about 'trillion dollar deficits' is misleading and will misdirect policy."

No mention of growing foreign reserves in there, btw, Chinese or otherwise.

I think that EPI article was mostly focused on the US federal budget, borrowing, and deficit spending. There is no mention in there about trade at all. I agree with the premise of the article in principle, there is not much to worry about in terms of the USA being able to handle it's deficit spending as a function of GDP or GNP.

The part I object to is that $412 billion (roughly 8%) of the federal tax money is given every year to foreign international banking to pay for the interest on the debt. It's like the US has an unlimited credit card where the government never pays down the principle, and only pays the interest charges. Many people in the anti-war community argue that this unlimited credit mostly (50% to 80%) goes to finance military endeavors. If the US had a balanced budget and had to live within its means it might force the congress to be more cautious before embarking on military expeditions.