Hoo-ah! My first column in the online op-ed section of the Washington Times:
The financial media put a positive spin on a joint statement Sunday by the wealthiest members of the Group of 20 countries that they would halve their deficits by 2013 and stabilize their debt burdens by 2016.
In the words of the Wall Street Journal’s lead story, the announcement was “a signal to international markets and domestic political audiences” that the G-20 countries “are taking seriously the need to wean themselves from stimulus spending.” Wrote the New York Times: “The action … signaled the determination of many of the wealthiest countries … to now emphasize debt reduction. And it underscored the conviction of European nations in particular that deficits represented the biggest threat to their economic stability.”
What both newspapers neglected to mention is that the goals require virtually no change in U.S. fiscal policy in the near term and only modest changes by the second half of the decade – at least if you believe the 10-year budget forecast prepared by the Obama administration. For all practical purposes, President Obama could have announced, “The Europeans can do whatever they want. We’re not budging from the status quo.” More.
Hopefully, there will be more columns to come — addressing less arcane topics than G-20 summit announcements.
