So the UN is calling for countries to help the US reduce it's deficits?

[G_j]

leave it to *....

http://www.truthout.org/docs_05/012705W.shtml

U.N. Report Calls for Help to Ease U.S. Budget and Trade Deficits
By Elizabeth Becker
The New York Times
Wednesday 26 January 2005

WASHINGTON - The United Nations on Tuesday urged all the major industrial countries, especially Japan and the nations of Europe, to help the United States reduce its deficits by spurring their own economies to grow faster.

In a report, "World Economic Situation and Prospects 2005," the United Nations said that the budget and trade deficits of the United States were putting the global economy off balance.

It echoed warnings by the International Monetary Fund and other financial institutions in saying the United States cannot continue to carry its huge debts.

"What we really need is a major advancement in cooperation among the advanced economies to help the U.S. get out of this problem," said José Antonio Ocampo, the under secretary general for economic and social affairs at the United Nations, in an interview.

..more..

[Oreo]

1. Queue Bush getting off scott free

why do anything productive when somebody always bails you out. It's the way bush works.

[nadinbrzezinski]

2. take cover

the shit is about to hit the proverbial fan... I am not kidding

[juajen]

4. nb, please explain what you mean to this financial dummie

All I know is that it sure sounds embarrassing to the US. Would you 'splain, please.

[xpat]

13. That's about it, Nadin

Here is a sampling of articles about the state of the US economy and the dollar. It looks like the proverbial fit has finally hit the shan. There's a lot to read here, so take your time.

These first two articles from Monday's Financial Times require a paid subscription to view today. The gist is that a survey of about 60 central banks shows that they are dumping dollars for euros and plan to continue doing so.

http://www.emailthis.clickability.com/et/emailThis?clickMap=viewThis&etMailToID=1676102327

http://www.emailthis.clickability.com/et/emailThis?clickMap=viewThis&etMailToID=1455695566

The remaining articles are still visible:

http://news.bbc.co.uk/go/pr/fr/-/1/hi/business/4209527.stm

http://www.iht.com/articles/2005/01/26/business/trade.html

http://iht.com/pdfs/ihtfrontpage.pdf

http://www.nytimes.com/2005/01/26/business/26trade.html?oref=login&oref=login

http://www.telegram.com/apps/pbcs.dll/article?AID=/20050126/APF/501260983


Besides the FT articles about central banks bailing out of dollars, the chief economist for China says at Davos that they no longer consider the dollar a stable currency. Along with Japan, China is one of the main pillars for US debt. If China stops buying up our debt, we collapse. Period. Japan is incapable of picking up the slack and probably unwilling to sacrifice itself. Nobody else wants to send good money after bad when they can invest in euros or yen.

Morgan Stanley's chief economist, also at Davos, said "This is an utterly insane way to run the world economy." These guys know what's going on and they are shitting their pants. There is panic in the boardrooms and it will likely soon spill into the streets.

The upshot of all this is that the US dollar is on the way out. It may not disappear today or tomorrow, but America's military might is not going to hold up the flailing currency. Think Argentina.

If I had a house to sell, I'd do it right now before the crash and put my money in a stable currency. If you're personal debt is getting you down, declare bankruptcy now and avoid the rush.

[fertilizeonarbusto]

3. How embarrassing

Honest, I hate those fascistic, murderous morons in charge SO MUCH.

[G_j]

6. oh the absurdity of it all!

kick

[TNOE]

5. Kicking

this is really hard to believe. Will this make the Republicans like the UN now?? If they help bail their prince out?

[bryant69]

7. I doubt it.

I suspect they will read this as the UN takes the opportunity to embarrass the United States. They will also grumble about how America doesn't need any helpe from France (that most hated of all nations).

Bryant
Check it out --> http://politicalcomment.blogspot.com

[muriel_volestrangler]

8. So, the US government is spending far more than it takes in

(the excess spending largely going on unproductive things like the military). It has cut its tax rates, which it thinks has got the US public spending more (tohugh not producing more). This extra spending has largely been done on foreign goods, which has created the trade deficit. This deficit is decreasing the value of the US dollar. To cover its budget deficit, the US govt is borrowing lots of money, which future Americans will have to pay lots of interest on.

The obvious solution would be for the US govt to raise taxes. This would lower the budget deficit, and future interest payments, while discouraging personal spending by individuals, which would improve the balance of trade.

Instead, the US thinks that Japan and Europe should take the same route as the US - decrease taxes, and so increase personal spending. If there are any countries that have both a budget surplus and trade surplus, that might make sense - but it also depends on the level of debt the government still has, and the future state of the country's pension system. The other governments may be being prudent - they may be running a budget surplus and decreasing their debt so that they will be able to afford pensions in the future. The problem is that the US government is being profligate in all areas.

[Stockholm]

12. Another way is to raise interest rates

but that would send the US into recession.

It is one of those things that irks me with the election result - everyone knew about the deficit, I mean how conservative is this complete lack of fiscal restraint and discipline?

The budget for next year will increase the debt especially after the +80 Bn for Iraq. Which areas will face decreasing funds because of this?

Raised taxes and fiscal discipline is the solution but that would not make * popular with his friends.

[DireStrike]

9. Who cares? We hate the U.N., remember?

Furriners! Oil for food! No veto over America's right to protect itself! Work will make you free! Freedom is slavery! Ignorance is Strength! War is peace! We have always been at war with Eurasia!

[OneTwentyoNine]

10. Bush says FO to the UN in March of 2003 and they want to help??

God..I wouldn't give that smirking bastard the time of day after his nose thumbing towards the UN before his illegal invasion of Iraq.

[LynnTheDem]

11. And another "never ever thought I'd see in my lifetime" event since 2000

Got to give bush credit for his being a f*ck-up; it's simply not possible that anyone on this planet could do it better.

But this isn't bush's fault. Old Europe slowed down their own economies just to make bush look bad.