Debtor Nation Robert B. Reich November 24, 2004 The holiday buying season is upon us. You might as well spend your cash now because the dollar is dropping like a stone in international currency markets. It’s dropped nearly 30 percent since 2001, and is now at a record low. Even without the recent dour pronouncements of Alan Greenspan and Treasury Secretary John Snow, the greenback is likely to fall further. And the reason is simple: We’re living beyond our means. American consumers are deep in debt. The nation is importing more than we’re exporting. Most importantly, the federal budget deficit is out of control. Nearly all of the increase in public debt over the last four years -- some 1 trillion dollars -- has been financed by foreigners, lending us the money. But who wants to lend more and more to a drunken sailor? Foreigners are bailing out of dollars. Even the Chinese and Japanese, who have kept lending so we’ll keep buying their exports, are starting to wise up.