G-19: The U.S. Stands Alone

By Bill Glynn

Greece's debt was over 120% of GDP when it hit a brick wall. The U.S. debt is now over 90% of GDP. While other nations around the world have mountains of debt, too, the U.S. economy is seen as able to sustain its debt levels and continue to be able to finance more deficit spending. Well, it was clear from the G-19 members that the U.S. stands alone in this assumption. The administration pushed hard for the rest of the world to continue to borrow and spend to assure the global economic recovery is sustained. But the U.S. has signaled through Timothy Geithner that America won't be able to take on the burden of carrying the rest of the world on our back anymore. So, the world is undergoing tax hikes and spending reduction while we trumpet more stimulus that hasn't worked already. The recovery is fragile at best and I do expect a dip coming. The "double dip" we are already teetering on looms and the plan is to borrow our way out of it and flood the market with more of our currency. This is a recipe for disaster. [more...]