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Old 12-31-2010, 04:53 PM
Craig
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I agree that the public portion of the current nation debt (about 65% of GDP) is too high. The only way to reduce that number is to improve the GDP and/or to improve the trade deficit. This issue has very little to do with concerns over domestic inflation. As a matter of fact, a weaker dollar tends to somewhat reduce the trade deficit. Issuing additional US currency does contribute to the debt, but it is a small impact compared to the trade deficit. If the US wants to solve this, they need to start producing goods and services that the someone actually wants to buy.
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