US living on borrowed time - and money

http://www.atimes.com/atimes/Global_Economy/HC24Dj01.html


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But the times, they are a-changing. Buried deep in the arcanum of some recently released economic statistics are indications that the world is tiring of its role as America's charge card.

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Thus in 2003, the current-account deficit meant that the US needed to entice $531 billion from the rest of the world. TIC data reported that what it actually got was $747 billion. For 2004, the need was $666 billion; it actually got $915 billion. For 2005, the need was $801 billion; $1.025 trillion was actually received. Many economic commentators believe that as this excess foreign capital started sloshing around and through the US banking and financial system, it kept US interest rates low and thus fired the tremendous rallies in real-estate and stock-equity prices that have occurred in the past few years.

But nothing good lasts forever. From reaching a high of $117.2 billion in August 2005, the TIC reports are showing a steady decline in foreign inflows, down to $74 billion in December, and $78 billion for January, the last month for which data are available. The nasty thing about this is that with a projected $975 billion current-account deficit for this year, the US is no longer getting what it needs from the world to maintain its lifestyle. The foreign-capital food supply is dwindling just as the hunger increases.

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On the first day of class, business teachers like me love to introduce our sleepy students to the concept of TANSTAAFL - there ain't no such thing as a free lunch. The United States may soon be introduced to the concept of TANSTAAFE - there ain't no such thing as a free empire. Specifically, will the nation still think it's so important to control the sands of Samarra, or the streets of Fallujah, or, for that matter, those of Baghdad if, like the signs say in US doctors' offices, "payment is expected at the time of service"?
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is it me or has the price of food at the grocery gone UP recently? way up.

and the price of everything seems to have gone up recently?

Groceries are getting expensive....