Germany Backs Kerry's Plan to Cut U.S. Budget Deficit

Bloomberg ^ | 07/30/04 | Bloomberg

[Pikamax]

Germany Backs Kerry's Plan to Cut U.S. Budget Deficit (Update2) July 30 (Bloomberg) -- Germany supports plans by Democratic presidential candidate John Kerry to pare the record U.S. budget deficit, a Foreign Ministry official said, welcoming a measure that may help stabilize the dollar against the euro.

``The Democrats have come out against the policy of debt, something that we and most other Europeans support,'' said Karsten Voigt, the ministry's coordinator for U.S. relations, in a telephone interview. ``It's a position that is jointly backed by the IMF and the World Bank.''

German Chancellor Gerhard Schroeder said after the euro rose to a record $1.2930 against the dollar Feb. 18 that the U.S. budget deficit and trade deficit were ``not having an unmentionable effect'' on the exchange rate, hurting German exports and damaging the country's economic recovery. The U.S. is Germany's main trading partner outside the European Union, taking 9 percent of the country's exports last year.

Under President George W. Bush, the U.S. recorded a $375 billion deficit in 2003, compared with a $237 billion surplus when he took office in January 2001. The widening shortfall is a ``worrisome'' threat to the economy, Federal Reserve Chairman Alan Greenspan said May 6.

[sevry]

Germany says . .

I'm sitting here thinking - do I read on? I wonder what the leftwig 'mainstream' would do if the Iraqi interim government decided to pass-go on Kerry's little speech or his party's putative 'platform' (which reads like a speech)?

Would be fun to see.

[Guillermo]

That is simply untrue.

I'll make half an effort to find the article that delineated all new Bush spending, and it shows most of it was not related to 9-11.

Also, is the (minimum) $400 billion for pills for Seniors related to 9-11? Tens of billions in new federal education spending? Ad nauseum.

[P-Marlowe]

Maybe if we could get Germany and France to repay us for the Marshall Plan expeditures in rebuilding their sorry countries, we'd have a surplus right now.

Well its clear that Germany and France would like to have a European President of the US. Maybe they think Kerry will agree to surrender our sovereignty to the EU, so that France can rule the world?

[tobyhill]

The idea of tax cuts are that one would rely less on credit cards and more on their earnings. The 7.3 trillion in debt is from the days of "if you like it buy it now and pay later". Maybe a few more economic classes in school could solve this problem. I am an earnest wage earner but I realize that I can have what I want if I save and spend what I need right now. People who totally rely on credit cards know the risk when it comes to higher interest rate and if they didn't refinance when the rates were low that's their problem. Taxing more doesn't solve that 15% over spending. The interest rates were lowered to give people an opportunity to pay down their debts not just to keep spending. Example; A couple, 2 kids, earning $30k a year has enough to pay their insurance, manditory bills, food and a little extra. Why do they have to have a $25k car when they can buy 2 good used cars at even less than the $25k?

[Redbob]

"France to endorse Kerry soon!"

[Doe Eyes]

Taxing more doesn't solve that 15% over spending

I agree that more taxes are not the answer. I'm disappointed that reducing spending/government just turned out to be a Republican campaign slogan.

[NeoCaveman]

The budget deficit projection for this year is down to 420 billion or 3.8% of GDP and they are probably being conservative with their revenue estimations. By fiscal year end our budget deficit will be about the same as Germany's, maybe lower.

[Red6]

I recommend every German take econ101 in college. Maybe even teach it in grade school. That way we won't have to hear so much stupid sh!t from across the pond.

Yea- That's what we need when the economy is stuttering, cut spending. Where is Germany now? At 12% unemployed yet? What's there growth? 1.8% or so?

Please give us some more advice.

Red6

[Red6]

He will make it again.

The more educated, self-proclaimed "intellectuals" and highly cultured will chase some anti war slogan (A war for which they basically had to do nothing).

The Germans have a knack for blaming other for their failures. Before it's all over Schroeder will blame the failing social infrastructure in Germany on the US. Furthermore, the Germans will believe anything that is fed to them by their state owned media.

[Happygal]

And the Germans have the neck to criticise Ireland for having a boom economy, while their own is in the gutter.

You are right. Physician heal thyself.