Washington Post, March 22, 2010 on page A14:
The economic crisis is leaving deep scars in fiscal balances, particularly in the advanced economies," John Lipsky, the IMF's No. 2 official, told the China Development Forum in Beijing,China. He said countries that have been going into debt to stimulate their economies should prepare for belt tightening steps next year.
The IMF projects that gross general government debt in the Group of Seven advanced economies, except Germany and Canada, will rise from an average of about 75% of GDP at the end of 2007 to about 110% of GDP at the end of 2014. Lipsky said. "The balloning of debt also comes amid rising health and pension spending and large public debt could lead to higher interest rates and slower growth."
"A higher public savings rate will be required to ensure the long-term fiscal sustainability of the United States.
"America's national debt -$12.5 trillion - has been growing by leaps and bounds over the past decade and threatens to swamp overall economic output. About half of it is owned by global investors, with China holding the largest stake."
Here is the empirical evidence of Sino-American Economics to date for our understanding.
Francis Shieh a.k.a. Xie Shihao,a blogger to share such updated info to stimulate our profound thought.
Monday, March 22, 2010 at 11 a.m.