There are two sure signs of insanity. One is doing
something the same way over and over expecting
a different result. The other is saying "I'm all right,
the WORLD'S all wrong!" --v
US Rejects IMF Warning that Debts Could Affect Global Economy
By Barry Wood, Washington
Voice of America News
08 Jan 2004, 20:52 UTC
The U.S. Treasury Department Thursday rejected a warning from the International Monetary Fund that the huge American trade and budget deficits could pose a risk to the global economy. {Oh? Just flat out rejected a warning from the IMF, eh? Well, that's just fine. -v}
A Treasury spokesman dismisses the IMF report as breathless hyperbole. {And if there's anything we've learned to recognize, it's breathless hyperbole! -v}The IMF says the $500 billion U.S. fiscal deficit combined with a $135 billion trade deficit could undermine the world recovery by pushing the dollar lower and interest rates higher. {Yeah? So? -v}
Treasury Secretary John Snow acknowledged Wednesday that the growing fiscal deficit is a problem. But he promised to cut the deficit by half within five years. {Uh oh! More tax cuts for the rich! -v} Mr. Snow outlined several reasons why the deficit is higher than anticipated.
"The war in Iraq: It is a one-time thing. {Yep. A one-time, 20+ year, $300 billion+ "thing." -v} But it had to be dealt with. Afghanistan had to be dealt with," he said. "But they created a bulge in [government] spending. And then we had the tax reductions." {Du-uh! -v}
The IMF has for a long time been worried about the burgeoning U.S. trade deficit. Its concern about the U.S. fiscal deficit is more recent, as the United States went from having a budget surplus in 2000 to having a very large deficit just three years later.
Posted by veebeep at January 9, 2004 08:20 AM