Quote:
Originally Posted by diskman
We can eliminate one pretty quickly. I can't imagine anyone proposing that we're going to "grow our way out of these deficits" with economic growth that will dramatically increase tax revenues. Let's agree on that--at least for the next few years.
depends on what we grow hahaha 
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One of the other reasons for the raise in debt is the weakness of the US Dollar against foreign currencies. This weakness has been a gradual thing, but it has reached the stage of almost worthlessness of our currency, making debt costs higher.
In 1970 the Dollar:Yen (Japan) exchange rate was 1:360. Today it's 1:106. in 1990 the Dollar:Franc (Swiss) was at 1:1.65, and today it is 1:1.06. We can all remember the Dollar
ollar (Canadian) rates as being quite favorable to the US, yet today its 1:1.03.
Our balance of payments ties into this conundrum, and without a means of leveling the scale, it too will thwart any recovery or debt relief. The short fix is the classical one - tariffs (another type of consumer tax in reality), which will also bring similar actions by the country whose goods are being so "taxed."
Bottom line - there is no free lunch.