Santa monica, California (Reuters) - the leading American economists expressed strong pessimism last Friday in Washington politicians will be able to reach an agreement to curb soaring U.S. government debt.
Sheila · bayer, the former chairman of the federal deposit insurance corporation, and Stephen roach, a veteran economist at Yale university school of management, also said that the United States federal reserve was created another catastrophic financial bubbles and try to stimulate the economy, through policy called quantitative easing.
The two sponsorship global risk in the Rand Corporation headquartered in Santa monica, California, Rand Corporation (Rand Corporation) and townsend Reuters, in a meeting.
Bayer, July, 2011, the United States federal deposit insurance corporation person in charge to step down, saying, the policy of the federal reserve, the infuse capital, combined with unprecedented historical period of low interest rates, the economy is creating "all bond bubble mother."
Beyer said, she says the United States is to finance the collapse of the housing market collapse, six years ago to see scale, but this time, as investors are looking for in other asset classes returns is higher, the risk is higher.
Roach is called the "about tick of the time bomb, let the fed's low interest rates and quantitative easing policy."
The two said, congress leaders in Washington and barack Obama meet, trying to find common ground, in tax revenue and expenditure, let them to a before imminent "financial cliff", can push the economy back into recession.
On January 1, started playing worth about $60 billion to increase taxes and spending cuts, unless congress to find a way to replace before this they are not too serious deficit reduce measures.
Bayer and roach said, they believe that congress will find ways to "kick on the path of" problem, fiscal cliff. Also think that the United States will use the necessary reform, in order to deal with the United States the basic structure of long-term debt crisis.
The United States has run several years of annual deficit of more than $1 trillion. National debt now provide more than 16 trillion dollars.
A series of group and commission last year suggested combination increase income and spending cuts way to repay its debts. Last year Mr Obama and republican house speaker John boehner, so as to reduce debt a "big deal" efforts opposite words collapsed.
"This is not difficult to make clear this," beyer said. "The lack of leadership, this does not let us in here, I just don't want to see leadership."
Roach said: "I am not optimistic, we will get a great deal, will truly solve our long-term problems."




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