Pete Peterson:deficits destroy economy- Topic A w/Tina Brown CNBC tonight

[papau]

http://cnbc.burrelles.com/Products.asp?ParentID=49109

Today "Topic A" with Tina Brown on CNBC reran the July 4, 2004 panel review of the sanity of Bush. Dr. Justin Frank, author of the controversial book "Bush on the Couch" and the fellow who is the Psych quoted on the Capitol Hill Blue site as an indirect reasonableness witness to that sites "dry drunk Bush now being on heavy drugs", thinks so and discusses his theories with Tina, Gail Sheedy, and Chris Hitchens - Gail Sheedy was great. But more important was the re jobs in the future was the Peterson segment.

She had Pete Peterson on re his new Book on aging around the world that will cause other countries to cash in the debt they now hold for the United States, causing interest rates to rise. Pete on the economy was on point as always - the Bush lower taxes are just passing todays unpaid tax onto our Children - as was noted by Milt Friedman at the Univ of Chicago 25 years ago.

Pete's point was that our debt increase (current account is 150% of the highest negative value it ever had before Bush - and we have a $450B deficit in in this years Budget) makes extremely high interest rates that destroy our economy inevitable - Our current low interest rates depend on other countries deferring current spending in order to buy our bonds. But other countries will have an aged population before we will - so they will need to cash in those bonds - driving interest rates so high that our economic growth will be stopped. World wide real assets - not government bonds - must be put aside to fund the future needs of the aged. And tax cuts that decrease the amount of assets that can be put aside - and indeed force us to borrow - will lead to a disaster.