The Budget Deficit Does Not Require Foreign Financing

In the middle of a useful article on the trade deficit the Post told readers:

"Last year’s $1.5 trillion Republican cut in corporate and personal income taxes, along with the decision to eliminate congressional limits on government spending, has revved up the economy and created nearly $1 trillion budget deficits for the coming years that require financing from abroad."

This is not exactly true.

When the government borrows more money, it pushes upward pressure on interest rates, other th...