Kent Conrad: “It is interesting. This is the second warning the IMF has issued this year about the U.S. deficits and debt. This is the…”

“It is interesting. This is the second warning the IMF has issued this year about the U.S. deficits and debt. This is the second time the International Monetary Fund has warned us and warned the world that growing U.S. deficits and debt threaten not only our own economic security but the world's economic security. Why? Because as the United States accumulates more and more debt, at some point those dollars that we are sending--that are being borrowed by us, money that is coming from China and Japan and, amazingly enough, South Korea--can you imagine that we have borrowed $60 billion from South Korea. At some point, that money has to be repaid. How is it repaid? How can it be repaid? Well, we have to reduce our standard of living in order to produce the funds to pay back the rest of the world.”