Fiscal responsibility? Foreign debt up to $804bn.

[Tierra_y_Libertad]

WASHINGTON - America went deeper into debt to foreigners last year as the deficit in the broadest measure of foreign trade hit a record $804.9 billion.

So far, foreigners have been happy to sell Americans their cars, television sets and oil and take U.S. dollars in payments. But economists worry that the trade deficit has grown so large that foreigners may balk at holding so much of their investments in U.S. stocks, bonds and other assets.

If they began dumping their U.S. assets, that could send the value of U.S. stocks and bonds plunging, pushing up American interest rates and weakening the value of the dollar. If the disruptions were severe enough, it could push the country into a recession.

http://news.yahoo.com/s/ap/20060314/ap_on_bi_go_ec_fi/economy


Yessiree those Republicans sure know how to watch that spending and keep the books balanced.

[unblock]

1. trade deficit is not budget deficit

but both are heavily in the red, so your point stands.