Hypocrite of the Week: Treasury's Wolin on the Sustainable Track for US Debt
Treasury's #2 had some lovely thoughts to share on globalization from Saudi Arabia last week:
The other session of the day witnessed interesting deliberations on the need for global economic governance after the crisis and rebuilding faith in financial institutions.
In the morning session, US Deputy Treasury Secretary Neal S. Wolin said the G20 had now become the premier forum for more diverse and balanced coordination of the global economy and had responded quickly to help restore the global financial system. There is growth now in many parts of the world but a number of challenges still exist — market turbulence is still there and as yet, there is no significant job growth.
Wolin acknowledged that in the past, the United States had bought too much and saved too little. This was no longer an option. In addition, US public finance must be put on a sustainable track.
"The US can no longer be the single driving engine of the world economy. The crisis has shown that the economies of all countries are intertwined and that all nations must do their part to build the new financial system, which must be stronger, safer and sustainable," he said.
I agree with the last point but am not sure who Wolin thinks he is fooling when he declares the obvious. Isn't it his job, as Treasury hack, to make that happen? Or is that the Fed's job? Who is keeping track?