Keyword: budget deficits
Free Money? (5/12/2010)
The dollar as an international reserve currency allows the United States to pile up huge budget and trade deficits as export-surplus countries accumulate dollars for their foreign exchange reserves.
Keywords: appreciation, budget deficits, central banks, dollar, foreign exchange reserves, free money, IOU, Reserve currency, trade deficits, yuan
Ponzi Schemes (1/22/2010)
Medicare and Social Security are Ponzi schemes whose long-term financial viability depends on an ever larger body of later contributors paying off a much smaller body of earlier contributors.
Keywords: budget deficits, Medicare, Social Security, Treasury Bond, trust fund