Money talks: financing the periphery buys Berlin a leading role recasting the eurozone governance framework. The recent ‘six pack’ of legislative reforms hints at what’s to come: institutionalized fiscal discipline and an excessive imbalances procedure that protects against future moral hazard. The whole eurozone will tilt toward the German surplus model as we get more fiscal integration and more German leverage.
As Mayor of New York City, Rudy Giuliani showed how exercising fiscal discipline, including tax cuts, lowers deficits, spurs economic growth, and increases revenue. It is time the rest of the country benefit from a true fiscal conservative leader who gets real results.Steve Forbes
The resolution of our current account deficit and household debt burdens does not strike me as overly worrisome, but that is certainly not the case for our fiscal deficit, which, according to the Congressional Budget Office, will rise significantly as the baby boomers start to retire in 2008. Our fiscal prospects are, in my judgment, a significant obstacle to long-term stability because the budget deficit is not readily subject to correction by market forces that stabilize other imbalances.Alan Greenspan
So the Bush-Obama administration has taken a fiscal stance diametrically opposed to that of the patron saint of free enterprise. While escalating war in Afghanistan and maintaining over 850 military bases around the world, the administration has run up the national debt that Smith decried. By shifting the tax burden off property and off rent-seeking monopolies – above all, off the financial sector – this policy has raised America’s cost of living and doing business, thereby undercutting its competitive power and running up larger and larger foreign debt.michael hudson
When the Republican Party is no longer the party of fiscal conservatism then clearly I would argue that we've lost our way.bobby jindal
A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.alexander fraser tytler
What saved the economy, and the New Deal was the enormous public-works project known as World War II, which finally provided a fiscal stimulus adequate to the economy's needs.paul krugman
If we discovered that, you know, space aliens were planning to attack and we needed a massive buildup to counter the space alien threat and really inflation and budget deficits took secondary place to that, this slump would be over in 18 months. … There was a Twilight Zone episode like this in which scientists fake an alien threat in order to achieve world peace. Well, this time, we don't need it, we need it in order to get some fiscal stimulus.paul krugman
When America's creditors consider our behavior they see total fiscal irresponsibility. They see a deluded country that acts as if it is a privilege for foreigners to lend to it, and a deluded country that believes that foreigners will continue to accumulate US debt until the end of time. The fact of the matter is that the US is bankrupt.paul craig roberts
As Mayor of New York City, Rudy Giuliani showed how exercising fiscal discipline, including tax cuts, lowers deficits, spurs economic growth, and increases revenue. It is time the rest of the country benefit from a true fiscal conservative leader who gets real results.
Moving to a full monetary union in Europe is like putting the cart before the horse. A major shock would result in unbearable pressure within the Union because of limited labour mobility, inadequate fiscal redistribution, and a ECB(European Central Bank) that will probably want to keep monetary conditions tight in order to make the euro as strong as the dollar. This is surely the prescription for major future problems.
Too often in recent history liberal governments have been wrecked on rocks of loose fiscal policy.
I think it's absolutely clear that the fiscal path we are on is not sustainable , and for me, the best analogy is these deficits are like a cancer, and over time they will destroy the country from within.
Throughout the years in which the US was punishing countries that departed from fiscal prudence, it was borrowing on a colossal scale to finance tax cuts and fund its over-stretched military commitments. Now, with federal finances critically dependent on continuing large inflows of foreign capital, it will be the countries that spurned the American model of capitalism that will shape America's economic future.john n. gray
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