Obama Cautions G-20 Nations on Budget

With the G-20 summit looming, President Obama warned leaders of the world's largest economies against practices that could compromise the global economic recovery—namely axing stimulus spending programs too quickly and relying too heavily on exports. In a letter Friday to G-20 leaders, who are set to meet in Toronto on June 26, Obama addressed the recent uptick in budget cuts amongst debt-saddled European nations that threaten to upset other EU nations where debt is not such a grave problem. Obama wrote: "It is critical that the timing and pace of consolidation in each economy suit the needs of the global economy, the momentum of private-sector demand, and national circumstances." He also touched upon America's recovery efforts, writing that though the U.S. is setting budget goals for 2013, it "will pursue measures to support the recovery in private demand and return the unemployed to work." The president also issued an indirect but stern warning to China for its failure to cut its reliance on exports, writing that he was concerned with "continued heavy reliance on exports by some countries with already large external surpluses... I also want to underscore that market-oriented exchange rates are essential to global economic vitality."