Notes: The second session of the 108th Congress convenes on Tuesday, January 20. In the first session Bush and Congress sprinted to spend our money without increasing revenues to pay for it causing a massive budget deficit. This being an election year, there likely will be no let up in the charge to charge it. Bush can do something his Democratic opponent cannot do: He can dole out federal money.

There is a question about how serious federal deficits are. I don't pretend to be able to understand that issue. There's an argument that we want a small controllable deficit as it attracts foreign money to our banks in the form of loans. However, I've read that there's a fear that a massive U.S. deficit coupled with a large trade imbalance could threaten the collapse of the world economy.

Which reminds me that I've also read that the manufacturing sector favors a weak dollar because it increases the sale of U.S. goods overseas, while most of the rest of us benefit from a strong dollar. Consequently, Bush will not say whether as a policy he will do something to strengthen the dollar.

Have you noticed that economists disagree on just about everything. It leaves a lesser person like me shaking my head in confusion.
01.18.04