Mixed signals from the US on stimulus spending

Do as we say, not as we do. That seems to be the message coming out of the United States to the rest of the world.

Secretary of the US Treasury Timothy Geithner has told the G20 to focus on policies that will create demand. That means more stimulus packages. It coincides with Barack Obama telling the G20 not to cut back measures that will stimulate their economies as Germany and Britain move to cut back their deficits.

Meanwhile in the US, the Senate has rejected proposals to extend unemployment benefits which means countless people around the United States will lose their benefits before the end of the year. They won't be spending so the US economy will continue to struggle.

All this coincides with US vice president Joe Biden telling a fund raiser that "there's no possibility to restore 8 million jobs lost in the Great Recession."

So much for the talk of recovery.


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