Treasury Secretary Geithner speaks at a G20 meeting earlier this year.
In the face of the stereotypical image of Americans as free-spending consumers, Treasury Secretary Timothy Geithner has told his international finance colleagues that G20 countries should not rely on American buyers for their products as they travel the road to economy recovery.
Recessionary pressures have boosted saving rates in the U.S. and caused Americans to tighten up on spending. —JCL
The New York Times:
Treasury Secretary Timothy F. Geithner of the United States told his counterparts at a Group of 20 conference on Saturday that they should not rely on spending by American consumers for their economic recovery, and he urged Japan, Germany and China to boost domestic demand.
“We discussed how the ongoing shift toward higher saving in the United States needs to be complemented by stronger domestic demand growth in Japan and in the European surplus countries, and by sustained growth in private demand, together with a more flexible exchange rate policy in China,” Mr. Geithner said.
He spoke at the end of a two-day conference of finance ministers and central bankers from the world’s 20 leading economies. The officials gathered in this port city in southern South Korea to discuss ways of shoring up a fragile global recovery in the face of the euro zone debt crisis.