🚀 go-pugleaf

On Tue, 27 Sep 2005 20:22:25 GMT, Aratzio <a6ahlyv02@sneakemail.com> wrote:

>Nice rant, Alexa!

[Alan Greenspan has been preparing to step down as the Fed Chairman at the
end of the year for some time. What does he know that we don�t? �Apres moi,
le deluge.� Here he is seen frankly admitting to G7 ministers that the
deficit is out of control. The US economy is a hairsbreadth from
capitulation, even now as Greenspan continues to quietly warn on the housing
bubble and rising consumer debt. Woe to those who keep borrowing against
illusory equity in their homes just to keep up or pay increased energy
bills. � MCR] 

Greenspan to French finmin: US lost deficit control 

By Paul Carrel 
September 25, 2005
http://www.boston.com/news/world/europe/articles/2005/09/25
/greenspan_to_french_finmin_us_lost_deficit_control/

In accordance with Title 17 U.S.C. Section 107, this material is distributed
without profit to those who have expressed a prior interest in receiving the
included information for research and educational purposes.

WASHINGTON (Reuters) - U.S. Federal Reserve Chairman Alan Greenspan told
France's Finance Minister Thierry Breton the United States has "lost
control" of its budget deficit, the French minister said on Saturday.

"'We have lost control,' that was his expression," Breton told reporters
after a bilateral meeting with Greenspan.

"The United States has lost control of their budget at a time when racking
up deficits has been authorized without any control (from Congress)," Breton
said.

"We were both disappointed that the management of debt is not a political
priority today," he added.

Ministers from the Group of Seven rich nations on Friday called for vigorous
action around the world to curb rising imbalances in international trade and
investment accounts.

A decrease in the U.S. budget deficit were cited by the G7 as one way to
ease those imbalances. U.S. Treasury Secretary John Snow said the U.S.
administration was still committed to halving its budget deficit by 2009.

Breton spoke as International Monetary Fund Managing Director Rodrigo Rato
said U.S. plans to cut its government expenditures now looked ambitious in
the light of huge reconstruction costs to be borne in the wake of Hurricane
Katrina.

Breton said: "The situation that is creating tension today on the currency
market ... is clearly the American deficit."

The United States needed to address its budget deficit, he said, adding: "It
seems to me that my counterpart John Snow is completely aware of this, he
wants to harness the problem, but it seems to me he doesn't have the room
for maneuver."

Breton added that after hearing Greenspan talk about inflation: "One has the
feeling -- though he didn't say so -- that interest rates will probably
continue to rise slightly until his departure."

Greenspan is due to step down as Fed chairman in January after 18 years in
the post.

Asked if G7 finance chiefs would meet as usual in February next year as well
as gathering for an extraordinary meeting in December this year -- partly to
pay tribute to Greenspan before his departure -- the French finance chief
said: "Yes, yes. Next February as well."

He said France was "not against" the idea of enlarging the Group of Seven, a
notion that has gained impetus at these meetings. 

� Copyright 2005 The New York Times Company