When Will America Feel the Pinch?

That seems to be the question in regards to the U.S.'s huge fiscal and trade deficit. The U.S. has been on a spending spree for the past 4 years and it is soon to wake up to a credit card hangover. Some interesting reads on the subject here and here talking about Bush's second term agenda and what will need to be done to pay for it. In order to pay for tax cuts on investment income, Bush is looking at a back door tax hike on the middle class. In any event, the future does not look pretty. To see how the deficit could affect you by how the outside world views the U.S. Dollar, read this. If you have not refinanced you home yet, get those interest rate locked in now. If you are looking to be a first time homeowner, do it now. If you are looking at taking federal loans to go back to school, do it now. Basically, anything that you will have to borrow money for, do it now.

For a really good book about how both parties are spending our future, check out Pete Peterson's book Running On Empty: How The Democratic and Republican Parties Are Bankrupting Our Future and What Americans Can Do About It.
Mr. Peterson was the Commerce Secretary for President Nixon.