News. June 5 (Bloomberg) -- German Chancellor Angela Merkel said economic growth can’t come at the expense of reductions in budget deficits, hinting at differences with the U.S. over the pace of paring public spending.
Leaders of the Group of 20 countries “will focus on sustainable growth paths” when they meet in Canada at the end of the month, where the fight against “high-deficit budgets” is a key topic for Germany, Merkel said after talks with Russian President Dmitry Medvedev in Meseberg, Germany, today.
My view. Yes, she is right. It is time to start thinking about all those social programs and generous pensions at the federal and state levels and determine if we can afford them.
I said it before. The markets always win. And they are forcing the global governments to face the issues. It is going to be painful. Economic growth will have to suffer.
There will be important investment consequences. My sense is that it is more likely that the markets will find solutions to the global problems. Not the politicians. They are known to be good at giving speeches. Not much more.
This is one area that the USA has a big advantage. We have shown the world that we know how to act -- quickly.
George Dagnino, PhD
Editor, The Peter Dag Portfolio. Since 1977
Ranked Top Market Timer in 2009 and 2010 by Timer Digest
To find out more about my in depth views of the markets and my strategy just visit our website https://www.peterdag.com/ where you can subscribe to The Peter Dag Portfolio. You can also call me at 1-800-833-2782 to discuss your specific investment portfolio.
Disclaimer. No material here constitutes "investment advice" nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
No comments:
Post a Comment