U.S. Trade Deficit Expands - WSJ.com

FACT FROM FICTION: U.S. Trade Deficit Expands - WSJ.com

One really wonders whether even if consumers in the US should suddenly find large extra checks in the mail from Uncle Sam whether the goods demanded would be imported or produced domestically.

Certainly the policies of the government both now and as forecast for the future include lower net returns to businesses, entrepreneurs and investors and higher and higher costs for domestic labor, government and union retirement programs, etc., etc., etc. - none of this would seem to inspire especially small or mid-sized businesses to take on any additional risks. Nor would it or should it encourage banks to take on the 'staring you in the face risks' attendant to the governments fiscal, social and tax policies.

It may be well and good to focus on unused capacity in the US; but, if the capacity is now going to cost more to operate (as noted above with respect to costs and returns), then the hurtle number to utilize the capacity has a greater and greater gap.

Greece has shown that interest rate surprises come about quickly - much more quickly than the time it takes to amortize loans to re-initiate or start production.

But somehow, all these facts are just too unpleasant to enter into a lot of comments on the economy!

I liked the remark about interest on the debt now being $1 billion a day. Ask how much of that is American treasure being shipped out to Arab countries (to build new cities in the desert and fancy new airlines, etc.) and to China to support industrial development?

But heck, there are UAW pensions and now public union pensions and free healthcare to be provided by the government here in the US. So, let's borrow now and forget about tomorrow.

Sadly, those who look to the future are usually those who create jobs. Those with their hands on the taxpayer credit cards usually don't create jobs, they just no how to run up humongous bills.