Tag Archives: deficit

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PIMCO: America could resemble Greece before 2020 – Telegraph

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PIMCO (the world’s largest bond fund) chief, Mr Gross, said that the United States must cut spending or raise taxes by 11pc of gross domestic product GDP over the next five to ten years, in order to preserve it’s role as a financial safe haven.

If we continue to close our eyes to existing 8pc of GDP deficits, which when including Social Security, Medicaid and Medicare liabilities compose an average estimated 11pc annual ‘fiscal gap,’ then we will begin to resemble Greece before the turn of the next decade,”

The warning comes after Moody’s has also warned the US that if it fails to control debt, then it will loose it’s AAA rating.

via PIMCO: America could resemble Greece before 2020 – Telegraph.

FYI, News

White House Attempt To Give Millions To Egypt Meets Resistance

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On Friday, Congress was notified by the Obama administration that it would be sending $450 million to Egypt.  This $450 million is part of a $1 billion package that Obama had pledged to Egypt in 2011 for debt forgiveness to the United States.

The administration however has met resistance.

The direction of Egypt’s course under the Muslim Brotherhood, its policies, local protests against the American Embassy located in Cairo and how the Obama administration has handled crisis in Islamic regions has left some wondering why the US continues to send aid.

Kay Granger, a Texan Republican who is chairwoman of the House appropriations subcommittee that is responsible for managing foreign aid, said that she would block this aid distribution.

The US relationship with Egypt “has never been under more scrutiny” than it is now.  Granger goes on to say, “I am not convinced of the urgent need for this assistance and I cannot support it at this time”.

However, Hillary Clinton speaking in New York on Friday, indicated that the world should do more in supporting the regions that have experienced the ‘Arab Spring’ uprisings.

This debate comes at a time when Egypt is in an economic crisis.  They are currently facing a $12 billion deficit in their budget.

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