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Entry for November 7, 2007 WELL DONE GEORGE WAS IT HARVARD BUSINESS SCHOOL?

Debt and the dollar

The United States damages future living standards by borrowing itself into a deceptively deep hole

December 14, 2004

The United States is currently borrowing $665 billion annually from foreign lenders to finance the gap between payments to and receipts from the rest of the world, an amount equivalent to $5,500 per American household. This borrowing entails serious costs for the U.S. economy. However, these costs have been hidden for the past few years, predominantly by the historically low interest rates, which resulted from the Federal Reserve’s attempts to spur economic recovery after the 2001 recession and from a downturn in domestic investment. This happy scenario will not persist indefinitely, and when interest rates rise, the costs of U.S. borrowing will have serious economic consequences:

http://www.epinet.org/content.cfm/Issuebrief203

2007-11-07 11:48:12 GMT

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			Entry for November 7, 2007 WELL DONE GEORGE WAS IT HARVARD BUSINESS SCHOOL? Debt and the dollar The United States damages future living standards by borrowing itself into a deceptively deep hole December 14, 2004 The United States is currently borrowing $665 billion annually from foreign lenders to finance the gap between payments to and receipts from the rest of the world, an amount equivalent to $5,500 per American household. This borrowing entails serious costs for the U.S. economy. However, these costs have been hidden for the past few years, predominantly by the historically low interest rates, which resulted from the Federal Reserve’s attempts to spur economic recovery after the 2001 recession and from a downturn in domestic investment. This happy scenario will not persist indefinitely, and when interest rates rise, the costs of U.S. borrowing will have serious economic consequences: http://www.epinet.org/content.cfm/Issuebrief203 2007-11-07 11:48:12 GMT Site Home