US Growth (Out of Debt)

I read this article today in the NY Times, and while it is mainly directed at China, it also shows how the US could be in trouble going forward.  The US government has been deficit spending to say the least.  In this case massive government spending includes TARP, extended unemployment benefits, the recently passed jobs bill, The American Recovery and Reinvestment Act, etc.  The most important assumption that accompanies the justification for deficit spending is that the country must be able to grow its way out of the newly created debt (otherwise risk bankruptcy or hyperinflation).  The only way to do that is through exporting to countries with savings.  This article shows how difficult that might be for the US.   

-Billy Ray

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