Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Volcker: Europe's debt crisis shows risks for U.S.

Published 05/18/2010, 10:00 PM
Updated 05/18/2010, 10:04 PM

STANFORD, Calif., May 18 (Reuters) - Europe's debt crisis shows the risks for the United States if it does not get its budget deficits under control, former Federal Reserve Chairman Paul Volcker said on Tuesday.

"If we need any further illustration of the potential threats to our own economy from uncontrolled borrowing, we have only to look to the struggle to maintain the common European currency, to rebalance the European economy, and to sustain political cohesion of Europe," Volcker said.

Volcker, a special adviser to U.S. President Barack Obama, was delivering remarks at the Stanford Institute for Economic Policy Research in California.

Volcker said the United States differs from small European countries such as Greece whose economies have come under speculative attack. He noted that the U.S. currency and credit "are well established."

But he added, "There are serious questions, most immediately about the sustainability of our commitment to growing entitlement programs."

(Reporting by Jim Christie in Stanford and Caren Bohan in Washington; Editing by Will Dunham)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.