Pretending that a number of second or third level economies reduce their defficit while overlooking the deficits of number one economy, is not only hypocrital but useless.
If my perceptions do not fail me , the USA fiscal deficit this year may close around 17 % of the economy’s GDP.
The external defict may not be as drastic when referred to the GDP because stagnation is there , but it will certainly be very drastic when compared to consumption.
The drama is that such deterioration will not have a positive effect in long term recovery because money has been spent in keeping consumption fictiously moving.
I do not pretend to cause unnecesary worries but with all respect to Mr.Obama good intentions , I believe that what is done so far in the USA will only precipitate a world implosion through 2011-2012 if not before.
Unless Greece and some other european economies collapse the dollar should go to where it belongs in real value and that will bring a real chaos to world economy.
Brahmason
Brahmason's Blog 