Tuesday, March 6, 2007

Foreign Government Holdings of American Debt

Don Boudreaux over at Cafe Hayek has an excellent post responding to Hillary's accusation that free trade is to blame for foreign powers buying American debt. He rather sensibly points out that if our politicians were legitimately concerned about the leverage our debt offered, they should bring spending in below income.

Uncle Sam is behaving like a drunkard who blames his alcoholism on Jack Daniels. . . .
Uncle Sam behaves irresponsibly, begins to worry about some of the consequences of this irresponsibility, and then insists that these ill-consequences are best avoided by making it harder for American consumers to seek out and take advantage of good deals offered by foreign sellers.


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