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G-20 Leaders Agree To Cut Deficits By 1/2

From CBS News:

G-20 Leaders Agree to Halve National Debts

World’s Wealthiest Nations Largely Reject Obama’s Plea for Continued Spending in Favor of Austerity

June 28, 2010

(CBS/AP)  World leaders, shaken by the European debt crisis but wary of ending stimulus programs, pledged on Sunday to slash government deficits in the most industrialized nations in half by 2013, with flexibility to meet the goal.

President Obama came to Toronto hoping to convince his G-20 colleagues to put more emphasis on stimulus spending to keep the economic recovery alive, reports CBS News chief White House correspondent Chip Reid. For the most part, he did not succeed.

They generally sided with cutting spending and raising taxes, despite Mr. Obama’s warnings that too much austerity too quickly could choke off the global recovery…

Luckily, when it comes to things like increasing government spending, Mr. Obama is very nationalistic. He won’t let any world leaders tell him what to do. When it comes to building up the Democrat Party’s war chest, Mr. Obama is more than willing to go it alone.

Summit participants navigated a careful course between Obama, with his emphasis on growth, and fellow leaders such German Chancellor Angela Merkel who advocated spending cuts and even tax increases.

French President Nicolas Sarkozy said: "I believe that the viewpoints came together, including with President Obama."

Oh, their viewpoints came together, all right. And why not?

Mr. Obama wants to grow the government and the Democrats campaign slush fund with even more stimulus money. But, of course, cutting defense spending and massively increasing taxes are in the cards, too.

Obama said that in the short run, it was important to maintain stimulus spending in countries that could afford it. "We can’t all rush to the exits at the same time," Obama told a news conference.

Who can afford it? Certainly not the United States, which has to borrow every red cent of its ‘stimulus money.’

But if financial markets are skittish and don’t have confidence in a country’s fiscal soundness, "then that is also going to undermine our recovery."

Yes, Mr. Obama is so concerned about reassuring the financial markets, he is trying to ram through one of the most radical ‘financial reforms’ of our financial markets in the history of the world.

The statement said industrialized countries agreed by 2013 to cut by half the size of the government deficit as it relates to the overall economy. That means a country that has a deficit that is the equivalent of 10 percent of its economy today would have to reduce it to 5 percent of the value of the economy in 2013.

Again, this should be no problem for Mr. Obama, who has long since pledged to halve the deficit by the end of his first term. (Of course, this deadline could turn out to be ignored — like all of his other deadlines.)

They also agreed, that by 2016, overall debt won’t grow as quickly as their economies do

Well, as long as everyone is agreed.

The United States ran a record deficit of $1.42 trillion last year, or 10 percent of its gross domestic product. Private economists expect the deficit will decline only slightly to $1.3 trillion this year, which would amount to 9 percent of GDP

And yet Mr. Obama has pledged to reduce the deficit to 3% of the the US GDP? What a laugh.

But of course all of these pledges, all of this sudden concern about the deficit has only one purpose. To create another ‘crisis’ mentality, so that he can and the Democrats can ram through all of the new and higher taxes that his ‘deficit commission’ are going to recommend once the elections are over.

All of which will come on top of the new and higher taxes that are already coming down the pike in 2011.

This article was posted by Steve on Monday, June 28th, 2010. Comments are currently closed.

5 Responses to “G-20 Leaders Agree To Cut Deficits By 1/2”

  1. Rusty Shackleford says:

    Just when you thought you couldn’t detest this little man any more, he opens his mouth, yet again, and reaffirms why he needs to be removed from office.

    He may be a “clever marxist” but is imminently unqualified to lead this nation. We are not marxists. We are capitalists. He hates that with every fiber of his being and I, in turn, hate him in-kind.

  2. wardmama4 says:

    I really have a hard time with this economic stuff – having had a checking account since I was 13 (receiving SS survivors benefits) and having been on my own since age 19 – I have learned – over and over again – (even after passing with an A a college Accounting course) – that to survive financially – Income (accounts receivable) must exceed Expenses (accounts payable). I do not believe that it is any different on a Federal/Governmental level (as with gravity for instance – a simple law that exists for everyone) – So how can someone, anyone actually talk that increased spending with no increase in income (tax hikes do not increase income, as most especially in a down economy – even more jobs/income will be lost) – can cut deficits at all, ever?

    The man is a destructive, self absorbed idiot and it is time that the other 2 branches of Government step up and do their duty – and remove him from office – but alas we must get through the Kagan nomination and NOvember elections to maybe, just maybe have that come true – too bad that the majority of Americans are not being heard in DC and that the majority of the GOP are too weak kneed and cowardly to even uphold the oath they took to sit in Congress – to uphold and defend the Constitution.

    Talk about kabuki theater – it would be amusing, if it weren’t the future of America and in reality the World.

    God Help America and Remember in NOvember.

  3. proreason says:

    Dont misunderstand him.

    Balancing budgets. Deficits. Fiscal responsibility. Taxes. Budget cuts. Interest rates. Inflation. The only purpose of these words is to create smokescreens to distract the rubes.

    He’s here to break this county. Whatever it takes.

  4. Mithrandir says:

    Obama’s TRICKLE UP economics doesn’t work

    Republicans ought to pin this slogan upon them for November elections, but as usual, they will try to act soft so that the liberal media doesn’t label them as “aggressive” “racist” “insensitive”. So, Republicans always back down, we will see if they have as much fight as the Tea Party people demand. . .

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