Tuesday, June 29, 2010

Wow! Is that really it?

What came out of the summit this week was that all countries must cut there deficit in half by 2013. This is not such a big target for any of these countries. As this year's deficit is the one with the big stimulus bills costing billions and billions of dollars. This big increase in spending is stooping after this year, so deficits across the world will shrink for the 2011 budget, and as long as a new recession does not come along, they do not have to try to reduce the deficit any more. Even the U.S. has it easy. Obama has the biggest deficit in the U.S. history, because of all the things he has proposed. By 2013 as long as a double dip recession does not come he is out of the clear too. The only thing anyone here may have a problem is with stabilizing GDP to debt ratio by 2016. This is easy for us since by then we will have a surplus (projected) or at least a very sustainable deficit by then. The U.S. has this problem: their deficit in 2016 will be is 700 billion (projected). This deficit is not going to get them out of the clear for this target. This target I find will be a challenge for only some countries. But the question I would like to ask the leaders "is this initiative worth a billion dollars?" I don't think a billion dollars in extra spending is worth an initiative that many may not have a problem with. The more I think about it the more I feel like this entire thing was a disaster, because nothing really concrete and big came out and I find , and was a complete waste of money. I hope the next one will be done better.

Look at Canadian deficits here

Look at U.S deficit here

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