It is quite "funny" how such important messages do not find themselves in mainstream media in the US...
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Gregg predicts US 'meltdown'
By Edward Luce in WashingtonPublished: February 26 2010 02:00 | Last updated: February 26 2010 02:00
The US is heading for a debt-driven "financial meltdown" within five to seven years, according to Judd Gregg, the outgoing Republican senator for New Hampshire.
In a robust and at times testy video interview for the Financial Times's View from DC series, Mr Gregg also complimented China for showing rising alarm about the US's mounting levels of public debt.
"We have had China say that they are looking for other places to put their reserves and that is probably a smart decision on their part," said Mr Gregg, who will not seek re-election in November. "So the warning signs are pretty clear and the path is unsustainable and, at this point unless we take different actions, unavoidable."
But the senator, who was the most high-profile Republican invited by Barack Obama, president, to join his administration last year, an offer Mr Gregg accepted and then turned down, said he doubted that the two parties would get together to tackle it.
Mr Gregg also played down prospects for the non-statutory fiscal commission that Mr Obama set up by executive order last week. "It was just an edict that came from a Democratic president," he said, adding, that "it's the only game in town right now."
Mr Gregg also disputed non-partisan economic studies that showed last year's $787bn (€585bn, £520bn) stimulus cushioned the impact of the recession. "The facts are wrong," he said. "I can understand how a Keynesian would make that argument. I find them absurd on their face."
Mr Gregg also disputed studies that showed the large tax cuts pushed through by George W. Bush, then president, in 2001 and 2003 had added to the US fiscal deficit.
"They were actually paying for themselves," he said.
In a robust and at times testy video interview for the Financial Times's View from DC series, Mr Gregg also complimented China for showing rising alarm about the US's mounting levels of public debt.
"We have had China say that they are looking for other places to put their reserves and that is probably a smart decision on their part," said Mr Gregg, who will not seek re-election in November. "So the warning signs are pretty clear and the path is unsustainable and, at this point unless we take different actions, unavoidable."
But the senator, who was the most high-profile Republican invited by Barack Obama, president, to join his administration last year, an offer Mr Gregg accepted and then turned down, said he doubted that the two parties would get together to tackle it.
Mr Gregg also played down prospects for the non-statutory fiscal commission that Mr Obama set up by executive order last week. "It was just an edict that came from a Democratic president," he said, adding, that "it's the only game in town right now."
Mr Gregg also disputed non-partisan economic studies that showed last year's $787bn (€585bn, £520bn) stimulus cushioned the impact of the recession. "The facts are wrong," he said. "I can understand how a Keynesian would make that argument. I find them absurd on their face."
Mr Gregg also disputed studies that showed the large tax cuts pushed through by George W. Bush, then president, in 2001 and 2003 had added to the US fiscal deficit.
"They were actually paying for themselves," he said.
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