U.S. Democrats Face Tough Choices

Bush has lost public support for his Iraq adventure, as public opinion polling shows. More importantly, the overall costs of the Bush foreign policy have yet to be understood by the American people. Congress needs to focus on the financial consequences for Americans of the Iraq debacle. It's the most prescient example of the costs to the U.S. of trying to run the world from Washington. Observers generally consider the U.S. to be rich country, albeit with a lot of poor people. Few question U.S. prosperity, and often the American economic model is held up as one to be emulated, not least in Canada, where the article lamenting Canada's inferior productivity performance, compared to the U.S., has been a journalistic staple for decades. What is less widely appreciated is the role foreign lending to the U.S. plays in financing U.S. economic expansion, and the U.S. military expenditures abroad, including in Iraq. Europeans readily add to large portfolios of U.S. stocks and bonds, helping out the U.S. economy. The central banks of China, Japan and other Asian countries have been steadily accumulating mountains of U.S. government debt. All this foreign lending to the U.S. underwrites American domestic consumption, and foreign policy adventures. http://www.rabble.ca/rabble_interview.shtml?x=56462

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