U.S. living beyond means, Dodge warns (Bank of Canada Gov.)

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http://www.cbc.ca/story/business/national/2005/05/30/dodge-warning050530.html

U.S. living beyond means, Dodge warns
Last Updated Mon, 30 May 2005 13:11:23 EDT
CBC News

OTTAWA - Bank of Canada governor David Dodge offered a bankerly rebuke to the United States on Monday for its borrow-and-spendthrift ways, which he suggested are a threat to world economic stability.

Less directly, he chided nations such as China for rigging their currencies to boost exports while building up larger and larger foreign-exchange reserves, creating a lopsided world in which Asian savings finance U.S. spending.

{{{David Dodge: 'A country's external indebtedness cannot keep growing indefinitely' (CP file photo)}}}}

In the text of a speech to be given at a Montreal conference, the central bank chief warned of "large, global economic imbalances that have become the subject of increasing concern" to policy-makers.

"I am referring, of course, to the persistent and growing current account deficit in the United States that is mirrored by large current account surpluses elsewhere, especially in Asia."

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