Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 22, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


11

Bernanke: US Must Save More, Asia Spend More

Fed chief warns global imbalances could trigger new meltdown

Share

(Newser) – The world economy is headed back down the drain if Asians don't start spending more and Americans don't start saving more, Ben Bernanke said at a conference yesterday. The Fed chief warned that unequal trade patterns were partly to blame for the financial crisis and that they are re-emerging as Asia leads the global recovery, reports the Los Angeles Times.

Export-driven growth has helped Asia rebound, Bernanke said, but more needs to be done to keep imbalances in check. Bernanke said American policymakers needed to develop a "fiscal exit strategy" to start reducing the budget deficit, warning that doing so is "critically important to maintain confidence in our economy and confidence in our currency."

Reserve Board Chairman Ben Bernanke testifies on Capitol Hill in Washington before the House Financial Services Committee.
Reserve Board Chairman Ben Bernanke testifies on Capitol Hill in Washington before the House Financial Services Committee.   (AP Photo/Evan Vucci, file)
Visitors walk in a hall showing large machinery at the 106th China Import and Export Fair in Guangzhou in south China's Guangdong province.
Visitors walk in a hall showing large machinery at the 106th China Import and Export Fair in Guangzhou in south China's Guangdong province.   (AP Photo)
A port worker walks past a cargo ship loaded with containers at the Tianjin Port, China.
A port worker walks past a cargo ship loaded with containers at the Tianjin Port, China.   (AP Photo/Andy Wong)
« Prev« Prev | Next »Next » Slideshow

To achieve more balanced and durable economic growth and to reduce the risks of financial instability, we must avoid ever-increasing and unsustainable imbalances in trade and capital flows. - Federal Reserve Chairman Ben Bernanke

« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.20.09
The Health-Care Wars Have Just Begun
11.19.09
Sarah Palin Deserves Some More Attention
11 comments
VIEWING:
 
Timinator2K
Oct 20, 09 8:55 AM CDT
Yes, America save more! The more you save, the deeper our economy goes in the toilet! You don't need jobs that are supported by a thriving economy, your leaders will take care of your every need! Forget about wants and dreams, though. Reply
Vote up! Vote down!
-1
IN RESPONSE:
Altoecko
Oct 20, 09 9:52 AM CDT
Did you seriously just argue against saving? Man, you are an idiot sometimes.
Vote up! Vote down!
+2
IN RESPONSE:
Snowleopard
Oct 20, 09 10:56 AM CDT
and in the next article he'll be arguing against deficit spending. absolutely no coherence to his arguments.
Vote up! Vote down!
+1
IN RESPONSE:
Vyridian
Oct 20, 09 8:39 PM CDT
That was just silly. What he means is stop buying crap we can't afford and set aside a bit of our income for the future. He is not saying boycott capitalism. I read quite a few of Bernanke's papers when I was an economics major in college. If you find socialism in his comments you will find socialism everywhere.
Vote up! Vote down!
+1
IN RESPONSE:
Vyridian
Oct 20, 09 8:41 PM CDT
And technically, if Americans saved NOTHING (meaning zero bad debt but zero savings), that would be saving more than we are now.
Vote up! Vote down!
+1

View all 11 comments »

LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

106 Stories

analysis

 Obama's China Visit 
 Achieves Little 

In fact, it just illustrates the 'yawning' economic differences

Nov 17, 09 4:48 PM CST
(Newser) - President Obama and Chinese leader Hu Jintao paid lip service today to the idea of stronger US-China relations, but Obama's visit has done nothing but highlight the "yawning differences" between the two nations on economic issues, writes Dexter Roberts. "Lofty statements of common interests aside, the all-important Sino-US... More »

MORE ABOUT:
China • US-China trade deficit • trade deficit • yuan • Hu Jintao • President Obama

DAVID BROOKS

 US Needs to Regain 
 Faith in the Future 

China shouldn't have monopoly on dynamism

Nov 17, 09 4:00 AM CST
(Newser) - America needs to overcome its "crisis of faith" caused by China's phenomenal growth, writes David Brooks. Today's China is optimistic, forward-looking, and dynamic in the way America once was and should hope to be again, he points out in the New York Times . Surveys show that 86% of... More »

MORE ABOUT:
China • US economy • Chinese economy • optimism • David Brooks • future


 Fed Restricts Overdraft Fees 

Customers must opt in for coverage of ATM, debit transactions

Nov 12, 09 1:06 PM CST
(Newser) - Starting in July, banks will have to get consumers' explicit consent before authorizing an overdraft—and the accompanying fee—on debit and ATM card transactions. Since the advent of the financial crisis, overdraft fees have become the biggest source of consumer fee income for banks. Congress is also considering making... More »

MORE ABOUT:
Ben Bernanke • Federal Reserve • debit card • ATM • financial crisis • overdraft fee

106 Stories


Business  •  US  •  World 
TwitterFollow @NewserBusiness on Twitter

 
China • Ben Bernanke • Federal Reserve • US-China trade deficit • trade deficit • US economy • Chinese economy • trade gap • financial crisis

from our news partners