U.S. living beyond means, Dodge warns

[CHIMO]

U.S. living beyond means, Dodge warns
Last Updated Mon, 30 May 2005 13:11:23 EDT

OTTAWA - Bank of Canada governor David Dodge offered a bankerly rebuke to the United States on Monday for its borrow-and-spendthrift ways, which he suggested are a threat to world economic stability.

Less directly, he chided nations such as China for rigging their currencies to boost exports while building up larger and larger foreign-exchange reserves, creating a lopsided world in which Asian savings finance U.S. spending.

In the text of a speech to be given at a Montreal conference, the central bank chief warned of "large, global economic imbalances that have become the subject of increasing concern" to policy-makers.

"I am referring, of course, to the persistent and growing current account deficit in the United States that is mirrored by large current account surpluses elsewhere, especially in Asia."

http://www.cbc.ca/story/business/national/2005/05/30/dodge-warning050530.html

[getmeouttahere]

1. Can you say "house of cards"?

[G2099]

2. Dodge said the imbalances won't go on forever.

"At some point, they will have to be resolved."

[rocktivity]

3. Candidate for this month's "You Call This NEWS?" award

Living beyond our means is what makes Americans AMERICAN, LOL! Where would this country be if we didn't buy what he couldn't afford! How many businesses would have gotten off the ground if seed money wasn't available by maxing out one's credit cards?

:headbang:
rocknation

[deadparrot]

4. Damn tax and spend lib'ruls...

:shrug:

[dejaboutique]

5. I'm surprised

I'm surprised that more world leaders have not expressed their concerns on our ability to affect the world economy with our over extended mortgage and suv habits. Glad he spoke up.