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May 28, 2012

G8's Statement Signals More Irresponsible Spending

First, I would like to thank the Business Insider for posting the entire G8 statement regarding Greece and the European debt crisis.  I have a few thoughts regarding the statement that I would like to share.

1) If you do a find function of the statement, you'll find out that the words deficit, debt, and spending were not used at all in the entire statement.  Dear G8, admitting you have a problem is step#1.

2) There's no accountability in this report.  The report discusses a "lack of confidence" in the global economy, as if it is the people and businesses fault that the economy is in jeopardy.  All they needed to say is "hey guys, my bad!"

3) There is language that hints towards further spending.  The big word is "investment."  The term is used six times in the statement.  The most concerning line was:

"Investment initiatives can be financed using a range of mechanisms, including leveraging the private sector. Sound financial measures, to which we are committed, should build stronger systems over time while not choking off near-term credit growth."

What is leveraging the private sector?  As the "private sector," I'm even less confident in the recovery then I was before I read that statement.  I'm curious as to what list of mechanisms they have at their disposal.  This would be a good interview question to President Obama.

When are these people going to wake up?

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