J2,
You know fine well that the exchange rate and price of energy are huge factors in the managable debt in a country.
If the finance brokers have confidence in the currency, then you can maintain much higher debt. If they dont, then the weakening currency increases the problem greatly.
At the moment, there is a very weak Dollar, as there is little to no confidence and investment shifts to those currencies that are perceived to be stronger. (That of course brings other problems to those countries.. economics is such a quagemire)
This is also echoed in the problem that "Oil" is priced in US Dollars, High Oil Prices therefore also increase the problem as a whole for the country, whilst at the same time make the Oil Companies themselves rub their hands in glee. This may be one of the reasons that Dubbya really doesnt seem to be doing anything to protect the value of the Dollar
Why dont you want "Slick Willie" brought in? Could it be that he has a much better record on this subject?
The Debt is increasing.. not because of the Tax Income, but because the weak Dollar and the high cost of fuel limit consumer spending, except overseas.
Unfortunatly, the US companies split themselves into more manageable units, as an example; although Ford will do ok, the Taxes for its more profitable overseas companies will go to the treasuries of those overseas countries, and not into the USA's coffers.
The price of "US" goods are reducing all over Europe... however "Levies" arent paying taxes to Washington, when they sell in the UK, they pay it to Westminster, as the goods are supplied at cost for sale in Europe to their UK company. There is no "Profit" as far as Washington is concerned... this is one of the methods used by international companies to stop themselves being taxed twice.
We really should thank them for helping our economies, to the detriment of your own.
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