FEDERAL RESERVE chairman Alan Greenspan has warned the country's politicians that unpopular steps must be taken to ensure the US economy does not suffer from a pending federal deficit crisis.
The Daily Telegraph reports the comments are the strongest yet on the deficit spending built up by the Bush administration – this year predicted to be more than $520bn. Greenspan refers to demographic change as the driver of continued unsustainable deficits in future, and the need for politicians to look at cutting back on so-called social security payments on items such as healthcare. Greenspan also warned the theory the Bush administration tax cuts would enable the country to grow its way out of debt was wrong, and added that encouraging consumers to take on debt now could harm grow...
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