Politicians have been coming up with short-term solutions to the multi trillion dollar deficit all year.
In short: Not even a Democrat can do very much new when faced with a trillion dollar deficit.
It reflects the stark reality of what we've inherited: a trillion-dollar deficit, a financial crisis, and a costly recession.
It was billed as a mechanism to stop the trillion-dollar deficit madness and a down payment on entitlement and tax reform.
Her campaign spiraled into a multimillion-dollar deficit that increasingly limited its options.
"He's promising a trillion-dollar tax cut and a trip to Mars... and he has a half-trillion-dollar deficit, " said Democratic presidential hopeful Howard Dean.
Back to the CBO numbers, the deficit projection for another year of trillion-dollar deficit is based on the idea that the law remain the same now and the Bush-era tax cuts not expire.
And while we need to do everything in the short-term to get our economy moving again, we must recognize that having inherited a trillion-dollar deficit, we need to begin restoring fiscal discipline and taming our exploding deficits over the long-term.
The U.S., for years burdened with a multi-billion-dollar trade deficit, had no problem because of the power of the dollar.
It is a false setup to suggest that somehow a dollar in deficit reduction is a loss.
With the country running a nearly trillion dollar annual deficit, it is time to make the hard decisions required to balance the books.
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Every extra dollar of current account deficit incurred by the United States is another dollar that has to be funded by foreigners.
America is now running an increasing deficit on its investment income, which will cause America's current-account deficit to widen indefinitely even if a weaker dollar stabilises the trade deficit.
Likewise, Soros, like others, has studied the fate of the dollar in our deficit-ridden, debt-laden economy and decided that the price of gold was going to rise in value as the globe lost more and more faith in the dollar.
Now, that support for the external deficit and the dollar has been taken away.
The dollar has shrugged off the deficit over the past few years as foreign savings have flooded into America.
But in 1969, as the strains between America's budget deficit and the dollar's gold peg emerged, an artificial reserve asset was created: the Special Drawing Right (SDR), run by the IMF.
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As the Federal Reserve continues to monetize half of our annual budget deficit, the dollar will continue to decline in value and the risk of rapidly rising interest rates will increase.
None of the panel discussions would be about the weakening U.S. dollar, or the staggering trade deficit.
The weaker dollar helps explain why the trade deficit has shrunk from 6% of GDP in 2006 to about 4% today.
They advocate a weaker dollar as medicine for the trade deficit, often blaming it for more economic problems than we actually have.
Yet the chief reason they campaign for a measured U.S. buck-weakening program is to "correct" our growing external deficit and avoid a dollar crash and financial market chaos.
Since June 2010, the Yuan has appreciated by 7 percent against the dollar, but the bilateral trade deficit is on target to be 34% larger in 2011 than it was last year.
Foreign central banks financed the remainder of our external deficit by also piling up dollar reserves.
Our trade deficit will shrink, our dollar will strengthen, and tens of billions of dollars will flow to the treasury.
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If you use the January baseline that everybody else has used, there is enough deficit reduction to do the dollar-for-dollar to put you into 2013.
Adding to confidence in the dollar, the U.S. fiscal deficit is plunging and exports are growing fast.
So long as foreign investors favour American equities, then, its large current-account deficit will not drag down the dollar.
First, the Obama administration ignores history by embracing the widespread belief that devaluing the dollar against the renminbi will reduce the trade deficit by improving the competitiveness of the U.S. economy.
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