I am an economist and like many others have long said that Bush's tax cuts for the rich are fueling deficits which are causing the dollar to tank and raising the likelihood of an economic crash.
But what many havent noted is that it is highly likely that the tax cuts are themselves DIRECTLY FUNDING CAPITAL FLIGHT out of the US and that this is directly contributing to the problem to some degree.
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How does this happen? It is actually quite simple. If you give huge tax cuts to people who dont need the money for consumption, then they are going to invest it somewhere where it will get the highest return. Where is that?
Right now it's in euros or some other foreign currency asset. Rich people, like not-as-rich economics professors, can see the writing on the wall (or at least their accountants can) and have been putting larger and larger shares of their holdings into these foreign assets as the ramifications of Bush's policies have become clearer and clearer.
What it really boils down to is that it doesnt matter very much what passport a rich person has. Just as dollar assets are less attractive to private investors abroad, they are less attractive to Americans as well.
But you dont need to be rich to protect yourself. As I have said in numerous previous posts and others have said today, anyone can buy a euro denominated deposit account or invest in a european or asian stock fund.
I am not rooting for a meltdown - But if there is going to be one - and the odds go up the longer Bush's irresponsible policies continue - then I want the chickens to come home to roost on Bush's watch. He cant blame Clinton anymore. He cant blame congressional democrats. He has only himself to blame.