US trade deficit dilemma

Trade deficit is a tango that US goverment dances for a long time. It takes two to tango.

If Federal government doesn't change the reckless fiscal policy, there won't been such a huge deficit to be funded by foreign capital. Say US don't want to tango with China now. It doesn't mean that US will stop tango. Who's gonna finance the overspending in the private and public sector: medicaid&medicare,War on terror, congress spending,and bubbling property development etc? If US don't want China, It must be Japan, Korea, Malaysia or whoever can pick up the dance shoes and dance with it.

Closing the door to a debtor doesn't mean you don't own debt anymore: if you don't make more and spend less, you'll still ask someone else to lend you money and you'll end up with more debt. sometime Federal goverment spends money just like a drunken sailor. I heard a story from Chris Edwards about redundant and unefficient grant program spending: Technology development venture capital fund ,created in the 1996 telecom reform bill,funds technology start-up companies in recent years by spending 22 million dollars, of which 11 million dollars are used to pay adminstration salary. 50% of the money is paid for the officials to carry out the paperwork.What a grant wasteful bureaucracy! and the official grant website grants.org is under construction by Northrop Grumman under a $22 billion federal contract.22 Billion with a b just for a website is remarkable.In fiscal year 2004 the federal government paid out $418 billion in grants. With today's gigantic budget deficit,government really should reform the current unefficient and resouce-consuming grant system. But that's not good for election. States and voters need grants to get some federal money love.

Sometime when you do the right thing,you don't think about the seats in the parliment. but That's just what I think.

Obviously Bush adminstration doesn't think so. That's why bush signed in law four major tax cuts in his first presidency even when the fiscal deficit was reaching the historic level. So who's gonna pick up the tax bill for him. Next president. But Bush's won two presidency already.Mission accomplished. Let tomorrow worry about tomorrow. It's all about election, isn't it? Sometime it's so hard to do the right thing even when you know what's the right thing: at least a tax reform is much needed.