Merkel Tells Obama Spending Cuts to Boost Economy, Not Put Brake on Growth

[The Northerner]

Chancellor Angela Merkel championed German export strength as “the right thing” for her country, spurning President Barack Obama’s call to boost private spending as both leaders prepare for Group of 20 talks.

Merkel, addressing a business audience in Berlin today, said she told Obama in a phone call that cutting government debt is “absolutely important for us,” exposing a second point of contention ahead of the June 26-27 G-20 summit in Canada.

Reducing the budget deficit by 10 billion euros ($12 billion) per year “won’t put a brake on the world’s economic growth,” Merkel said, relating what she told Obama yesterday. Germans are more likely to spend money if they feel the government “is taking precautions” to ensure solid finances, she said.

Four days before world leaders meet in Toronto, Germany is heading for conflict with the rest of the G-20 over tighter financial regulation, a banking levy and U.S. calls to boost growth rather than cut debt.

The G-20 must “safeguard and strengthen” the economic recovery and promote “global demand growth that avoids the imbalances of the past,” Obama said in a June 16 letter to fellow G-20 leaders. He expressed concern about “heavy reliance on exports by some countries,” which he didn’t name. Treasury Secretary Timothy F. Geithner called on June 5 for “stronger domestic demand growth” in European countries like Germany that have trade surpluses.

Read more: http://www.bloomberg.com/news/2010-06-22/merkel-tells-obama-spending-cuts-to-boost-economy-not-put-brake-on-growth.html

[RC]

1. It depends on who is spending the money and who is receiving it.

In this country is was the government spending it and the rich receiving it.
A real recovery has living wage jobs for the masses. We are still losing ours, living wage jobs that is.

[county worker]

2. The only ones concerned about the deficit are ones who don't need government help.

Cut war spending, cut the need for military spending, raise taxes on those most able to pay them without having to reduce their quality of life.



The wealthy want more wealth from the government without the pain. They want to balance the budget on the backs of the working class and poor.

[DJ13]

3. She's full of crap