US Treasury Secretary Timothy Geithner has told the BBC that the world "cannot depend as much on the US as it did in the past".The sad truth of the matter is that we are, and have been for some time, drowning in a sea of red ink, and the current administration has exacerbated this situation more than any administration in our history. The tragic part is that they show no indication of stopping any time soon and continue to throw staggering amounts of at the problem, seemingly unaware that their actions make the situation worse by the day.
He said that other major economies would have to grow more for the global economy to prosper.
He also played down any differences in policy between the US and Europe regarding deficit reduction.
Mr Geithner was speaking in Washington ahead of G8 and G20 meetings this weekend in Toronto.
The ever-increasing amounts of government (tax payer) dollars flooding the economy in lieu of, and effectively stiffing, real private sector expansion, combined with a serious contraction in the number of tax payers (due to high unemployment rates) to find these boondoggles, creates, and nurtures, a catastrophic environment that the Obama administration refuses to see.
Alas, Geithner may well be signalling that this White House will continue on its ill-fated course. If that is the case, the world will have to find a new economic champion, for the American Atlas is crumbling under the weight of the impossible burden that has been thrust upon him.