The British Pound is trading a little better after a report showed the U.K. trade deficit-narrowed more than analysts expected in January led by a record surge in exports.

It is interesting to see so many of the same people calling for a "double dip" recession while at the same time railing against government spending. The US Government is spending $3.5Tn this year. Admittedly that’s $1.5Tn more than they have but it’s quite a lot of money no matter how you look at it.

Our government is achieving more success in re-inflating our bubble economy as they compel the consumer to spend more than they earn. Today's release of the Personal Income and Spending report along with the ISM Manufacturing report gives yet more evidence that we have learned nothing from the credit crisis which nearly brought down the entire global economy.

Do the Chinese really fund our deficit? Or is this more Neo-classical money mythology?

Don’t the Chinese (and other external creditors) “fund” our deficit? And won’t they demand a higher equilibrating interest rate in order to offset the declining value of their Treasury hoard?