http://www.commondreams.org/views04/0105-08.htm
>It would seem that Shrub it trying to outdo himself. Not satisfied
>with ruining the US economy, he's now trying to do the same to the
>world's economy.
>
>larry
>
>http://www.businessworld.ie/livenews.htm?a=832297;s=rollingnews.htm
>
>US deficit threatens world economy - IMF
>
>Thursday, January 08 08:43:14
>
>(BizWorld)
>
>The US is running up a foreign debt of such record-breaking
>proportions that it threatens the financial stability of the global
>economy, according to a report released today by the International
>Monetary Fund (IMF).
>
>Prepared by a team of IMF economists, the report sounded a loud alarm
>about the shaky fiscal foundation of the US, questioning the wisdom
>of the Bush administration's tax cuts and warning that large budget
>deficits pose "significant risks" not just for the United States but
>for the rest of the world.
>
>The report warns that the US' net financial obligations to the rest
>of the world could be equal to 40pc of its total economy within a few
>years - "an unprecedented level of external debt for a large
>industrial country," which could play havoc with the value of the
>dollar and international exchange rates.
>
>
>
>The dangers, according to the report, are that the US' voracious
>appetite for borrowing could push up global interest rates and thus
>slow global investment and economic growth.
>
>"Higher borrowing costs abroad would mean that the adverse effects of
>US fiscal deficits would spill over into global investment and
>output," the report said.
>
>The report also said that the dollar had been hurt by the mushrooming
>US current account and budget deficits, which could crowd out private
>investment and erode confidence in the US currency.
>
>"This trend is likely to continue to put pressure on the US dollar,
>particularly because the current account deficit increasingly
>reflects low saving rather than high investment," said the report.
>
>However, White House officials have dismissed the report as alarmist,
>saying that President Bush has already vowed to reduce the budget
>deficit by half over the next five years.
>
>The deficit reached USD374bn last year, a record in dollar terms but
>not as a share of the total economy, and it is expected to exceed
>USD400bn this year.
>
>--
>
>Larry C. Lyons
>
>========================================================
>Life is Complex. It has both real and imaginary parts.
>========================================================
>Chaos, Panic and Disorder. My work here is done.
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