One of the many dangers of so much public borrowing
Monday, March 16, 2009 at 3:22AM FRONT PAGE: "Obama, Breaking 'From a Troubled Past,' Seeks a Budget to Reshape U.S. Priorities: Tax Rise for Wealthy--Push on Health and Education," by Jackie Calmes, New York Times, 27 February 2009.
BUSINESS OUTLOOK: "Will The Obama Budget Hurt Private Borrowers?" by James C. Cooper, BusinessWeek, 16 March 2009.
FRONT PAGE: "A Rising Dollar Lifts U.S. But Adds to Crisis Abroad: Capital Dries Up in Ailing Nations as Cash Floods Back Into Treasury Bills," by Peter S. Goodman, New York Times, 9 March 2009.
Obama is ambitious, and I always like that. Better to do too much than too little, and better to try too hard that sit in apathy, waiting on others. That's how you really lose a decade, Japan-style.
But plenty of fear here of the new sucking sound in the global economy--namely, all that investment money heading into U.S. Treasuries.
There's fear there won't be enough left over for private entrepreneurship, or for emerging markets in general.
THAT'S why it is crucially important that we don't signal any protectionist impulses during this time period. We are ALREADY beggaring the world considerably by our magnified debt requirements.
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