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Germany hails Biden’s move to halt Trump-ordered troop cuts | Donald Trump News

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Trump planned to pull out about 9,500 of the roughly 34,500 US troops stationed in Germany.

The German government on Friday welcomed President Joe Biden’s decision to formally halt the planned withdrawal of US troops from Germany, arguing the troops’ stationing there is “in our mutual interest”.

Last year, then-President Donald Trump announced he was going to pull out about 9,500 of the roughly 34,500 US troops stationed in Germany, but the withdrawal never actually began.

Biden said Thursday the pullout would be halted until defence secretary Lloyd Austin reviews America’s troop presence around the globe.

“The German government welcomes this announcement,” Chancellor Angela Merkel’s spokesman, Steffen Seibert, told reporters in Berlin. He said: “We will remain in contact with the new American administration on its further plans.”

“We have always been convinced that the stationing of American troops here in Germany serves European and transatlantic security, and so is in our mutual interest,” Seibert said. “We very much value this close, decades-long cooperation with the Americans’ forces that are stationed in Germany.”

Asked whether Germany would make any concrete offers to persuade the US not to withdraw troops, Seibert said Berlin will follow developments but “how these reviews go is an internal American matter”.

The US has several key military facilities in Germany, including Ramstein Air Base, the headquarters for US European Command and US Africa Command, and Landstuhl Regional Medical Center, the largest American military hospital outside the United States.

Trump’s order met resistance from Congress as well as from within the military, which has long relied on Germany as a key ally and base of operations.

Trump announced the troop cuts after repeatedly accusing Germany of not paying enough for its own defence, calling the longtime NATO ally “delinquent” for failing to spend 2 percent of its gross domestic product (GDP) on defence, a benchmark that alliance members have pledged to work towards.



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US debt projected to balloon to more than double GDP by 2051 | Debt News

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The non-partisan Congressional Budget Office warned that by 2051, the United States’ debt will skyrocket to 202 percent of its gross domestic product, up from 102 percent this year.

The U.S. federal debt will grow to more than double the size of the economy in three decades, increasing the risk of a fiscal crisis even though dangers appear low in the near term, the Congressional Budget Office said.

Debt will be equivalent to 202% of gross domestic product by 2051 from 102% this year, the nonpartisan arm of the legislature said Thursday in its long-term budget outlook. Its projection for 195% in 2050 was unchanged from the prior report, whose forecasts ran through that year.

Net interest payments on the debt are expected to remain relatively low for the next decade, then rise rapidly over the following 20 years, the CBO said. The agency projects 10-year Treasury yield, after inflation, at 2.6% in 2050. The nominal yield was at 1.54%, near the highest in more than a year, on Thursday.

The CBO also said that the two Social Security trust funds, for seniors and people with disabilities, will be exhausted later than the agency projected last year.

The report — which doesn’t reflect the $1.9 trillion stimulus plan currently working its way through Congress — follows the selloff in Treasuries over the past week that sent yields spiking. Investors are gaining more confidence that rates will move up, with U.S. growth and the labor market set for a stronger-than-expected uptick as vaccines roll out and states lift restrictions.

The CBO outlook’s debt projections will likely underpin already-firm opposition by Republicans to the relief plan, and could also concern some Democratic lawmakers as President Joe Biden prepares a followup multitrillion-dollar plan to build infrastructure and boost the economy in other ways.

“The risk of a fiscal crisis appears to be low in the short run despite the higher deficits and debt stemming from the pandemic,” the CBO said in the report. “Nonetheless, the much higher debt over time would raise the risk of a fiscal crisis in the years ahead.”

Federal Reserve Chairman Jerome Powell said Thursday that the U.S. economy still has a long way to go before the central bank considers tightening, and underscored that the low-inflation world of the past several decades is unlikely to change.



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