Deficits redux

A short follow-up on my earlier posting,Deficits and ... more deficits. The "reserved central bankers" in the U.S. are now using words like "frightening" and "crisis." What they said this week:

We now have Janet Yellen, the San Franciso Fed President, on the record saying the long-term budget picture ''frightens me... We'll be looking at budget deficits that will make us wish for the level that we have now...''

Federal Reserve Chairman Ben S. Bernanke said the U.S. government may face a ''fiscal crisis'' in the coming decades.

from Reuter's,''Federal Reserve Chairman Ben Bernanke on Thursday told U.S. lawmakers that a review of U.S. tax code would be a good idea. 'I think the conventional wisdom among economists is that tax cuts don't necessarily pay for themselves,' Bernanke told the Senate Budget Committee."

On top of this, it seems that U.S. investors may be catching on, and shifting their portfolios abroad. ''U.S. investors send their cash packing.''