In remarks at a San Francisco Fedral Reserve Bank conference in Santa
Barbars, noted in the NY Times datelined October 20th, Chairman Ben
Bernanke of the Federal Reserve is recommending that China improve its
social insurance programs while simultaneously recommending that the
US weaken its.
October 20, 2009
Fed Chief Cites Role of Trade Imbalances in Crisis
By EDMUND L. ANDREWS
SANTA BARBARA, Calif. — Ben S. Bernanke, the chairman of the Federal
Reserve, said on Monday that global trade imbalances played a
central role in the global economic crisis and warned that both the
United States and fast-growing Asian nations needed to do more to
prevent them from recurring.
<snip>
By the same token, he said, Asian countries needed to rely less on
exports and more on their consumption at home for their economic
growth. One way to increase Asian household consumption, he said,
would be for countries like China to increase social insurance
programs and reduce the uncertainty that currently hangs over many
consumers.
<snip>
For the US to substanially reduce its fiscal deficits over time as
Bernanke recommends will surely require cutting Federal social
programs, though it appears Bernanke did not make that explicit.
Gene Coyle
_______________________________________________
pen-l mailing list
[email protected]
https://lists.csuchico.edu/mailman/listinfo/pen-l
