Lately Alan Greenspan has been harping on the growing US account deficit and the plunging dollar quite a bit. It is no surprise. Law makers just raised the ceiling on the US debt and Bush (who is mainly responsible for the current dire economic state) is saying: "Where do I sign?".
This must be the most ludicrous dog and pony show ever. Even a child can grasp the absurdity of what the law makers are doing. They over-spend and then pass laws to legitimize the wastefulness. It's as if the town judge pardon and then legalize every offense after committing them himself.
Greenspan has a reason to be worried. The Dollar is hitting all time lows against other currencies and foreign confidence in America is clearly waning. Some may try to comfort themselves by proclaiming that the budget deficit ratio to the total GDP is still lower than its historical highs. Fine, bury your head in the sand. But while we're inhaling dirt, others discover that America just isn't what it used to be.
But even more disconcerting is that the world isn't what it used to be either. Foreigners are starting to realize that the US isn't the only game in town. Europe and China certainly offer good investment prospects, but even countries like Turkey have started to attract serious investors.
And so we continue to be blindly lead down the road. If the democrats are known for tax and spend, the republican have proved their prowess in borrow and spend. And when it's all said and done, it's the average American citizen that will be left holding the bag.