Posted on 12/06/2004 10:43:11 AM PST by leadpencil1
Peter G. Peterson sees fiscal trouble ahead for U.S.
NEW YORK (CBS.MW) - Rising deficits, the falling dollar, a low savings rate and soaring Medicaid and Social Security costs threaten to cripple the U.S. economy, pundit Peter G. Peterson warned on Monday.
"We are on an unsustainable path," Peterson told about 100 people at a Global Finance Leadership Forum held at Forbes Magazine.
Peterson, chairman of private equity firm The Blackstone Group and the U.S. Secretary of Commerce under Richard Nixon, outlined the thesis of his new book, "Running on Empty."
Peterson said both Democratic and Republican parties are "bankrupting our future" and called for a "massive dose of truth telling" by politicians.
While Peterson described himself as a Republican, he said the recently re-elected Bush administration and the GOP overall "has become theological and faith-based" rather than pragmatic about the effects of tax cuts and big spending.
Meanwhile, the Democrats have taken a "do nothing" position on addressing the looming cash crunch in the country's Social Security program.
An even bigger problem on the horizon is Medicaid, which will likely cost more than Social Security as the U.S. population ages.
Peterson said the U.S. needs to attempt to import less, save more and consume less, and suggested a mandatory savings program to combat rising deficits and a falling dollar.
Such a savings account should not be run by a government agency, but a quasi public-private panel that would invest it for the public, he said.
Peterson suggested the formation of a bi-partisan panel, not unlike the Sept. 11 Commission, to work on policy proposals to make the U.S. more economically sound, and less dependent on foreign investors that continue to buy our debt.
While politicians resist making big fiscal changes because benefits aren't seen until they're out of office, officials also have an interest in avoiding the fate of Herbert Hoover, who is saddled with the legacy of the Great Depression.
While Peterson said he's not an economist, he thinks it's possible that President George Bush could be faced with a "hard landing" to the economy during his next four years.
Even Americans can't make socialism work!
Pete Peterson has been gloom-and-dooming it for as long as I can remember. And that's about 20 years.
Yes, and all the other countries are in even worse shape.
Furthermore, this has been going on for hundreds of years.
These are the same nutjobs who predicted doom and gloom in 1990, 1995,1999,2000 and now this.
They make money with this...
These are the same nutjobs who predicted doom and gloom in 1990, 1995,1999,2000 and now this.
They make money with this...
Pete Peterson has written such books as:
"The Coming Depression of 1987"
"The Coming Armageddon on 1993"
"The Big Crash of 1998"
...and many more...
"sustainable"?
"quasi-public/private panel that would invest it for the public"?
sounds like more of this leftist "Invest in America"
razzamatazz that we got from the Clinton Administration
Blackstone?? Isn't that the guy that does the worst dressed list?
Of course, in the "long run," we're all dead.
Dear dfwgator,
Yeah, he's one of these guys who has predicted 16 of the last two recessions. ;-)
sitetest
Am I mistaken, or weren't all the establishment economists and networks giving us the same crap during the Reagan adminstration about our trade deficit with Japan and the budget deficits then?
This guy is a big shot in the Council on Foreign Relations, a big socialist oligarchical group of the mega-rich run by David Rockefeller.
Mandatory Savings? You mean, I give it to the Gov't on the threat of financial and personal ruin and they do what with it? Sounds like he's proposing a new "general fund" tax and calling it a Mandatory Savings Account.
This guy is a major idiot.
Such a savings account should not be run by a government agency, but a quasi public-private panel that would invest it for the public.
The guy should rewind to about 1913. There was no SS, no Medicare, no MediCaid, and (drum roll please...) NO INCOME TAXES!
I challenge you to find another country that has as a high a foreign debt. The sum of all our yearly trade deficits. You can take that debt and divide by population and we will be the highest..... this is what's sinking the dollar.
"...and many more...
and called for a "massive dose of truth telling" by politicians.
Right.
- Next he will be calling for massive honesty from lawyers.
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