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In a letter to the rest of the G20, Tim Geithner, US Treasury secretary, argued: "Concerns about growth as Europe makes needed policy adjustments threaten to undercut the momentum of the recovery".
Geithner is contradicting himself. Europe's "policy adjustments" cannot be "needed" if they have predictable negative consequences.

But monetarism rules, so we will stifle any budding recovery in a self-defeating attempt to contain debt by containing spending. We all know the projections for Greece's austerity olicies are of a substantial increase in debt-to-gdp ratio with no compensating posivite outcomes except for the creditors who should have gone bust in the last two years had they not been bailed out repeatedly.

By laying out pros and cons we risk inducing people to join the debate, and losing control of a process that only we fully understand. - Alan Greenspan

by Carrie (migeru at eurotrib dot com) on Sun Jun 6th, 2010 at 10:08:13 AM EST
It's my understanding, "needed policy adjustments" refers not only to rationalizing customary government transfers but also increasing amounts of funds to service treasury transactions and equities' re-insurance ("growth").

Such an adjustment surely produces "negative consequences" among dependents of government transfers. Conversely, this adjustment surely produces "positive outcomes" for capital market participants, "the creditors," such as financial services brokerages, debt and equity owners, securities underwriters and traders that have avoided losses during the preceding 24 months of market failures.

Geithner is soliciting assurances from his G20 and Group 30 colleagues that they will continue to discriminate beneficiaries of "growth" according to  a fiscal agenda, they have agreed to implement.

Diversity is the key to economic and political evolution.

by Cat on Sun Jun 6th, 2010 at 10:55:44 AM EST
[ Parent ]
the US wants more demand from others so that it can reduce its own spending.

That this is inconsistent with calls for "discipline" is irrelevant to the US politician he is.

Wind power

by Jerome a Paris (etg@eurotrib.com) on Sun Jun 6th, 2010 at 10:59:13 AM EST
[ Parent ]


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