Germany Warns US Not to Become 'Addicted to Borrowing'

[The Northerner]

The US has heavily criticized German austerity measures in recent days. Now, Germany's finance minister has fired back, warning against becoming addicted to deficit spending and noting that history has made the country extremely wary of national debt and inflation.

Conflict, it would seem, will be everywhere in Toronto this weekend as world leaders gather for the G-20 summit to discuss possible reforms to the global financial system. Already, new British Prime Minister David Cameron has said that he may end up trying to avoid sitting next to German Chancellor Angela Merkel on Sunday.

"I'm not sure if that will be safe. We might get a bit carried away," he said.

Cameron's comments were, of course, tongue in cheek. He was referring to Sunday's World Cup battle between Germany and England in South Africa. Still, there is little doubt that sparks will fly this weekend, particularly when it comes to competing views on fiscal policy between Europe and the United States.

Indeed, German Finance Minister Wolfgang Schäuble poured more fuel on the fire in a contribution published Friday in the business daily Handelsblatt. Referring to US demands that Germany abandon austerity in favor of additional economic stimulus measures, Schäuble said that "governments should not become addicted to borrowing as a quick fix to stimulate demand. Deficit spending cannot become a permanent state of affairs."

Read more: http://www.spiegel.de/international/business/0,1518,druck-702849,00.html

[DJ13]

1. As your German economy falls over the cliff

from the reduced spending, we'll be sure to laugh at you.

signed,
The United States.

[SOS]

2. This advice is 29 years late

Reagan, Old Bush and Little Bush added $7.46 trillion to the national debt.
Where was this right-wing European blather then?

[no_hypocrisy]

3. + 1

[hfojvt]

4. Germany is right

we should be increasing taxes on the rich instead of borrowing.

[Initech]

5. Wanna end the deficit? Four easy things to do:

1. Legalize pot
2. Increase taxes on the wealthy.
3. Tax the fuck out of large religious organizations who have political ties (like FOTF or Rick Warren)
4. End the god damn war already!!!!

[Dawson Leery]

6. The Social Democrats thank you for your stupidity.

[Odin2005]

7. The Krauts need to quit telling us what to do!