Posted on 11/15/2009 3:32:12 PM PST by Pan_Yan
President Barack Obama has promised Asia's creditor nations that Washington will not let US borrowing spiral out of control, vowing a major drive to cut the budget deficit and restore global confidence in the US dollar.
"As the economy recovers, I intend to take serious steps to reduce America's long-term deficit," he told the Asia-Pacific Economic Co-operation (APEC) forum in Singapore. "Debt-driven growth cannot fuel America's long-term prosperity."
The assurance comes amid growing doubts across the world over the wisdom of White House spending plans. The US Congressional Budget Office expects the deficit to remain around $1.8 trillion (£600bn) as far ahead as 2019 under current plans, pushing the US national debt into the danger zone.
China, Japan, and other Asian states with large holdings of US Treasury debt fear that Washington may be embarking on a course that will lead to "stealth default" through dollar debasement and creeping inflation. The public mood in the US has also been shifting as the Republicans score points with calls for a return to fiscal rectitude.
The US deficit reached $1.42 trillion in the fiscal year of 2009 and it is expected to top $1.5 trillion in 2010, roughly 10pc of GDP.
APEC leaders said the world economy would never be the same again after the financial trauma of the last year. "The post-crisis landscape will be different. We need a fresh model of economic integration. We cannot go back to 'growth as usual'," they said.
[snip]
Mr Obama gave warning to Asian exporters that they must stand on their own feet in the future rather than feeding off US markets. "We cannot follow the same policies that led to such imbalanced growth.
(Excerpt) Read more at telegraph.co.uk ...
Translation: Obama plans to spend just as much but tax more.
I don't think they believe him any more than we do.
How much longer will he be out of country? I love it when he’s gone.
Silly.... I was referring to Congressman Joe’s outburst as Lord Zero was giving his speech about the health care plan.....not to what you said.
Because it has already been out of control for decades.
no its if you owe the bank billions they own you
no its if you owe the bank billions they own you
Cheers!
Too late!
This from the man who lies every time he opens his mouth!
Let me translate this one for you, Mr. Wen.... BUY GOLD!!!!!!!!!
Don’t worry Asia - we’ll “draw” you a profit. :)
The October "emergency" stimulus was neccesary to save the world financial system from immediate collapse due to some bad mortgage loans, but it will now take deficits of $1.8T per yeat 'till 2019 to push the debt into the "danger zone"?
WHAT?
On this point, I agree with our dear leader although the method to avoid borrowing will be different than he envisions. We will not be able to borrow to fund our monstrous deficits. We will simply roll out the printing presses.
Obama makes an important qualification about his plans. He indicates that the borrowing will stop when the economy recovers. The economy is not recovering at least as we are usually accustomed.
Just remember your new role in the new ecnonomy, volunteering for Americorps.
Just kidding
"As the economy recovers, I intend to take serious steps to reduce America's long-term deficit," he told the Asia-Pacific Economic Co-operation (APEC) forum in Singapore. "Debt-driven growth cannot fuel America's long-term prosperity."
Yeah, starting when you dumb ass 0bozo???? So far you've done everything you can to destroy our economy and bankrupt our country. Stay the hell out of our country and don't come back!!! That would really be the first step towards recovery.
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