U.S. Federal Reserve Chairman Alan Greenspan told France’s Finance Minister Thierry Breton the United States has “lost control” of its budget deficit, the French minister said on Saturday.
“‘We have lost control,’ that was his expression,” Breton told reporters after a bilateral meeting with Greenspan.
“The United States has lost control of their budget at a time when racking up deficits has been authorized without any control (from Congress),” Breton said.
I know the Greenspan is not the most popular Central Banker especially among Democrats. I have to admit he has dropped a few notches on my ratings as well. I would add, however, he remains a very bright economist who has had more than a few important insights about the US economy.
I was particularly surprised this story did not get more press in the US. It is a very telling statement about the current state of the US Congress undere Republican leadership.
The Republicans have lost their claim to fiscal conservatism. There is no way they can argue they are fiscally conservative after the last 5 years. But, the Dems need to remind voters of the stark contrast between Bush’s and Clinton’s economic leadership. Dems balanced budgets. This is a huge issue for a lot of people out there. I don’t care if they begrudingly pull the Dem lever, just so long as they pull it.