German Chancellor Angela Merkel said throwing too much money into reviving global economic growth would make the recovery unsustainable, in comments published yesterday.
Merkel snubbed calls to spend more public money in Germany as part of a coordinated international stimulus effort, in an interview with the Financial Times newspaper.
She told the British business daily that the business of putting the global economy back in order would not be finished at Thursday’s G20 summit in east London.
“This crisis did not come about because we issued too little money but because we created economic growth with too much money and it was not sustainable growth,” Merkel said. “If we want to learn from that, the answer is not to repeat the mistakes of the past.”
She also warned against inflated expectations from next week’s gathering of top world leaders at the ExCeL exhibition center.
“We are talking about building a new global financial market architecture and we will not be able to finish this in London. We will naturally not solve the economic crisis either, and we won’t solve the issue of trade. We will definitely need to meet again,” she said.
The chancellor was skeptical about moves for looser monetary policies and bigger public deficits as a way to battle the downturn.
Merkel said she would “expect to see a return to sustainable fiscal policies after the crisis,” saying “states cannot borrow forever.”
She added: “We must look at the causes of this crisis. It happened because we were living beyond our means ... governments encouraged risk-taking in order to boost growth. We cannot repeat this mistake. We must anchor growth on firmer ground.”
“We were spending too much to create growth that was not sustainable. It isn’t just that the banks took over too many risks. Governments allowed them to do so by neglecting to set the necessary [financial market] rules and, for instance in the US, by increasing the money supply too much,” she said.
Playing down the notion of a rift between Europe and Washington, she praised US President Barack Obama for being ready to reform financial markets.
“We are coming together to make joint decisions, not to compete against each other,” Merkel said.
“We all want the same thing: to put the world economy back on its feet as fast as possible and to prevent such a crisis from happening again.”
German Chancellor Angela Merkel said throwing too much money into reviving global economic growth would make the recovery unsustainable, in comments published yesterday.
Merkel snubbed calls to spend more public money in Germany as part of a coordinated international stimulus effort, in an interview with the Financial Times newspaper.
She told the British business daily that the business of putting the global economy back in order would not be finished at Thursday’s G20 summit in east London.
“This crisis did not come about because we issued too little money but because we created economic growth with too much money and it was not sustainable growth,” Merkel said. “If we want to learn from that, the answer is not to repeat the mistakes of the past.”
She also warned against inflated expectations from next week’s gathering of top world leaders at the ExCeL exhibition center.
“We are talking about building a new global financial market architecture and we will not be able to finish this in London. We will naturally not solve the economic crisis either, and we won’t solve the issue of trade. We will definitely need to meet again,” she said.
The chancellor was skeptical about moves for looser monetary policies and bigger public deficits as a way to battle the downturn.
Merkel said she would “expect to see a return to sustainable fiscal policies after the crisis,” saying “states cannot borrow forever.”
She added: “We must look at the causes of this crisis. It happened because we were living beyond our means ... governments encouraged risk-taking in order to boost growth. We cannot repeat this mistake. We must anchor growth on firmer ground.”
“We were spending too much to create growth that was not sustainable. It isn’t just that the banks took over too many risks. Governments allowed them to do so by neglecting to set the necessary [financial market] rules and, for instance in the US, by increasing the money supply too much,” she said.
Playing down the notion of a rift between Europe and Washington, she praised US President Barack Obama for being ready to reform financial markets.
“We are coming together to make joint decisions, not to compete against each other,” Merkel said.
“We all want the same thing: to put the world economy back on its feet as fast as possible and to prevent such a crisis from happening again.”
Also See: Brown, Bachelet call for IMF reform
Also See: China seeks G20 currency debate on dollar concerns
‘SHARP COMPETITION’: Australia is to partner with US-based Lockheed Martin to make guided multiple launch rocket systems, an Australian defense official said Australia is to ramp up missile manufacturing under a plan unveiled yesterday by a top defense official, who said bolstering weapons stockpiles would help keep would-be foes at bay. Australian Minister for Defence Industry Pat Conroy said the nation would establish a homegrown industry to produce long-range guided missiles and other much-needed munitions. “Why do we need more missiles? Strategic competition between the United States and China is a primary feature of Australia’s security environment,” Conroy said in a speech. “That competition is at its sharpest in our region, the Indo-Pacific.” Australia is to partner with US-based weapons giant Lockheed Martin to make
BEYOND WASHINGTON: Although historically the US has been the partner of choice for military exercises, Jakarta has been trying to diversify its partners, an analyst said Indonesia’s first joint military drills with Russia this week signal that new Indonesian President Prabowo Subianto would seek a bigger role for Jakarta on the world stage as part of a significant foreign policy shift, analysts said. Indonesia has long maintained a neutral foreign policy and refuses to take sides in the Russia-Ukraine conflict or US-China rivalry, but Prabowo has called for stronger ties with Moscow despite Western pressure on Jakarta. “It is part of a broader agenda to elevate ties with whomever it may be, regardless of their geopolitical bloc, as long as there is a benefit for Indonesia,” said Pieter
TIGHT CAMPAIGN: Although Harris got a boost from an Iowa poll, neither candidate had a margin greater than three points in any of the US’ seven battleground states US Vice President Kamala Harris made a surprise appearance on Saturday Night Live (SNL) in the final days before the election, as she and former US president and Republican presidential nominees make a frantic last push to win over voters in a historically close campaign. The first lines Harris spoke as she sat across from Maya Rudolph, their outfits identical, was drowned out by cheers from the audience. “It is nice to see you Kamala,” Harris told Rudolph with a broad grin she kept throughout the sketch. “And I’m just here to remind you, you got this.” In sync, the two said supporters
Pets are not forgotten during Mexico’s Day of the Dead celebrations, when even Fido and Tiger get a place at the altars Mexican families set up to honor their deceased loved ones, complete with flowers, candles and photographs. Although the human dead usually get their favorite food or drink placed on altars, the nature of pet food can make things a little different. The holiday has roots in Mexican pre-Hispanic customs, as does the reverence for animals. The small, hairless dogs that Mexicans kept before the Spanish conquest were believed to help guide their owners to the afterlife, and were sometimes given
RSS