http://weeklyintercept.blogspot.com/2011/04/world-finance-chiefs-chastise-us-on.html

Intercept

 

Finance ministers in Washington for semi-annual talks took sharper aim than in previous years at the United States' $14 trillion debt.

 While most of the criticism came from emerging market economies, some advanced nations joined the chorus.

Dutch Finance Minister Jan Kees de Jager warned that if the United States and other advanced nations move too slowly it could undermine confidence in the global economy.

"Insufficient budgetary consolidation may spark off further escalation of debt sustainability issues, with repercussions on confidence and the still fragile financial sector," de Jager told the International Monetary Fund's steering committee.

"Debt dynamics in other advanced economies, including the United States, are of concern."
The IMF this week said the U.S. budget deficit was on course to hit 10.8 percent of nation's economic output this year, tying with Ireland for the highest deficit-to-GDP ratio among advanced economies. It urged Washington to move quickly to put a credible plan in place to tighten its belt.

Brazil's finance minister, Guido Mantega, offered sharp words in a thinly veiled attack on the United States. "Ironically, some of the countries that are responsible for the deepest crisis since the Great Depression, and have yet to solve their own problems, are eager to prescribe codes of conduct to the rest of the world," he said.

The Group of 20 countries agreed on Friday to a plan that could put more pressure on the United States to fix its deficits as well as push other leading economies to address their own shortcomings.
The IMF's advisory panel on Saturday said issues of financial stability and sovereign debt stability must be addressed, saying in a communique that "credible actions are needed to accelerate progress." It emphasized the need for fiscal consolidation in advanced economies while avoiding overheating in emerging economies.

The Obama administration and the U.S. Congress are locked in battle over how best to fix the deficit. Republicans are pushing for deep spending cuts as part of the argument over raising the nation's $14.3 trillion debt limit, something which is needed to avoid an unprecedented U.S. debt default.

The Republican-led House of Representatives on Friday approved a plan to slash spending by nearly $6 trillion over a decade and cut benefits for the elderly and poor.

President Barack Obama, who has offered a competing vision to curb deficits by $4 trillion over 12 years, said on Thursday the Republican plan would create "a nation of potholes."

The White House is wary about cutting spending sharply while the economic recovery remains fragile.
Treasury Secretary Timothy Geithner told fellow finance ministers on Saturday caution was needed.
"We are committed to fiscal reforms that will restrain spending and reduce deficits while not threatening the economic recovery," he said.

Geithner was quick to say others whose policies contribute to global imbalances must change too, "especially those whose fundamentals call for greater exchange rate flexibility..."

The United States has repeatedly called for China to relax its limits on the yuan currency.

Yi Gang, a deputy governor of China's central bank, called for "more rigorous" efforts by advanced economies to tighten budgets and said the IMF needs to strengthen its monitoring of these rich nations.
Russian Finance Minister Alexei Kudrin, taking aim at the U.S. Federal Reserve, said central banks that buy government debt to keep interest rates low were abetting fiscal profligacy.

The Fed is on course to complete the purchase of $600 billion in U.S. government debt by the end of June, which would take its total purchases of mortgage-related and government debt since December 2008 to nearly $2.3 trillion.

Echoing Republican lawmakers and even some Fed officials, Kudrin said those purchases blurred the line between monetary and fiscal policy in a way that could jeopardize a central bank's independence.
"We observe this process with some wonderment, since it amounts to the monetization of those countries' budget deficits," Kudrin said.

Views: 74

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

tjdavis posted a video

When Havoc Struck - Bel Air Fire 1961 - 1978 TV Series Glenn Ford

Here is the complete "Bel Air Fire" episode of the TV series "When Havoc Struck" from 1978. Includes intense footage and dramatic interviews from survivors o...
8 hours ago
Doc Vega posted a blog post

Living a Lie

Living a Lie She is like a pearl in the sands of the shorePerhaps a fantasy that could become moreA…See More
18 hours ago
Less Prone favorited tjdavis's photo
yesterday
Less Prone commented on tjdavis's photo
Thumbnail

Killbillys

"Could it be that B.G. is an AI controlled drone who seeks to advance the goals of the advanced AI…"
yesterday
cheeki kea commented on Sandy's photo
Thumbnail

FB_IMG_1737188817344

"It's as if it jumped the bush it had no appetite for and raced off to what it wanted to fuel…"
Monday
tjdavis posted photos
Monday
Burbia commented on Burbia's group The Comment Section is Closed
"Every comment here looks like they are all on the same page"
Monday
tjdavis posted blog posts
Monday
Less Prone commented on Parrhesia's photo
Thumbnail

Black Rock

"Black Rock, the sixth rock from the sun, is Saturn (Satan). Saturn has one day of the week,…"
Sunday
Less Prone favorited Doc Vega's photo
Sunday
Less Prone commented on tjdavis's video
Thumbnail

DARPA Avatar Project - A Sentient World Simulation

"Is artificial intelligence and its power consumption a driving force behind the need for more…"
Sunday
Doc Vega posted a photo
Sunday
Doc Vega posted blog posts
Saturday
Sandy posted a photo
Saturday
Sandy commented on tjdavis's video
Saturday
Sandy favorited tjdavis's video
Saturday
Sandy commented on tjdavis's video
Saturday
tjdavis's 2 blog posts were featured
Friday
Doc Vega's 4 blog posts were featured
Friday
FREEDOMROX's blog post was featured
Friday

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted