Germany's already-large budget deficits cannot be sustained indefinitely at such low rates of economic growth, much less increased.
For Mr Snow, that translated into promoting Mr Bush's tax cuts despite large budget deficits (though these have declined recently).
Most Democrats, and some moderate Republicans, have been concerned that the president's tax cut proposals would create large budget deficits in future years.
Some of them are also running large budget deficits themselves.
Tax plans that boost federal receipts ensure large budget deficits as far as the eye can see, not to mention a federal government whose size will continue to astound.
Normally, massive Fed lending and asset purchases along with large budget deficits would be highly inflationary, but, so far, these actions have not led to excessive money creation, which is what causes inflation.
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We can see a similar sort of thing today, where the U.S. government has been running very large budget deficits, with the resulting bond issuance in large part absorbed by foreign central banks.
As European peripheral countries have found out to their cost, interest rates increase when governments run large budget deficits, and as they do it becomes increasingly difficult to reduce r-g to a sustainable level.
In particular, large budget deficits and growing debt would reduce national saving, leading to higher interest rates, more borrowing from abroad, and less domestic investment which in turn would lower income growth in the United States.
On top of that, large current budget deficits are crowding out small business credit.
"Protracted debate prior to increasing the debt ceiling is not an exceptional event, but against the backdrop of unprecedentedly large peacetime budget deficits and outstanding debt, any delay in raising the limit would pose ever-increasing risks to the ability of the federal government to honour its obligations in a timely fashion, " Fitch said in a statement.
Large current account and budget deficits suggest that the dollar has further to go on the downside, says Hesler.
The first is that governments running large and potentially unsustainable budget deficits have to pay a risk premium for borrowing in the capital markets.
In earlier periods when the federal debt was not so large and annual deficits were a much smaller percentage of the total budget the revenue and spending goals of a flat tax may have been much more feasible.
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