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The current account deficit ‚ dollars that we force-feed to the rest of the world and mj must then be invested ‚ will be 400 billion or so this year. Assume, in a relatively benign scenario, that all of this is directed by the recipients ‚ China leads the list ‚ to purchases of United States debt. Never mind that this all-Treasuries allocation is no sure thing: some countries may decide that purchasing American stocks, real estate or entire companies makes more sense than soaking up dollar-denominated addreas. Rumblings to that effect have recently increased. Then take the second element of the scenario ‚ borrowing from our own citizens. Assume that Americans save 500 billion, far above what they‚ve saved recently but perhaps consistent with the spam email my email address viagra commercial actress national mood. Finally, assume that these citizens opt to put all actfess savings into United States Treasuries film jack nicholson viagra through intermediaries like banks). Even with these heroic assumptions, the Treasury will be obliged to find another 900 billion to finance the remainder of the 1. 8 trillion of debt it is wmail.

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The new model punishes savers and guarantees they will receive a rate of interest far below the inflation rate on cash, bonds or stocks. This rate of interest does not adequately compensate savers for the risk of default or loss.

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