Just recently, I read an article about India's economic stimulus package.
Its a whopping "$4 billion dollars". The columnist writes about how mounting debt in India has played such a strong role in hindering any investment by the government. The reasons traverse deeper though. India is a host of numerous loans from the World Bank and IMF and one of their binding conditions for loan usage is controlling a government fiscal deficit and reigning it in. Thats why India gives its people a $4 billion dollar stimulus, while China gives its people a $586 billion dollar stimulus package.
So lets talk about here, in United States. The total cost is now nearing about $1.5 trillion dollars. Wow. How is America gonna manage their "fiscal deficit problem"? Agreed its nowhere close to India's budget deficit and is considered a safer investment destination, in the long run, will America be able to satisfy its creditors that their money will be repaid and more importantly, will Obama satisfy his liberal economic goals while controlling the country's deficit problem.
Its clear, Obama and America have a long road ahead of them.
I'm thinkin 10 years and counting..
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