Prince Bin Talal Urges U.S. to Tackle Budget Shortfall
Saudi Arabian tycoon Prince Alwaleed bin Talal urged the United States Friday to step up efforts to reduce its massive budget deficit, calling it a time bomb.
"We in the outside world, outside the United States, believe the United States is not giving much care and attention to this time bomb that you have right now here," Alwaleed said in an interview with U.S. television network CNBC.
"You need some structural changes in the United States," said the Saudi investor, a nephew of King Abdullah and one of the kingdom's wealthiest men.
"You can't go forever with $1 trillion in arrears."
The U.S. annual deficit has topped $1 trillion since fiscal year 2009, which ended September 30, 2010, and currently represents about 10 percent of the output of the world's largest economy.
The Obama administration, struggling to bolster a weak recovery from the worst recession in decades while repairing public finances, estimates the deficit will not fall below $1 trillion until 2013.
According to its projections, at that time the deficit would be 4.6 percent of gross domestic product, after shrinking to 7.0 percent 2012.
Alwaleed, the biggest shareholder in Citigroup and a major investor in Rupert Murdoch's News Corp., rejected suggestions the U.S. could default without consequence on its debt, which hit its $14.29 trillion legal limit Monday.
Republican lawmakers have refused to lift the borrowing cap unless the Democratic White House agrees to spending cuts.
Treasury Secretary Timothy Geithner has warned of a potential U.S. default on its obligations by August 2 if Congress fails to raise the limit.
"That's gambling. This is the United States. You're leading the whole world," said the wealthy prince, whose fortune is estimated at $20 billion.
"You cannot play games with that," he said.
Source: Agence France Presse
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