Obama Seeks G-20 Aid in Fixing World Economy

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President Barack Obama says he is determined to go after the, "reckless risk-taking" that pushed the global economy into the worst financial catastrophe since the 1930s.

In addition, he wants countries to work for what he calls safer growth in the future.

He'll get some support from other countries as the G-20 global economic summit begins in Pittsburgh, Pa. Thursday.
But the president will also face tough questions from other countries such as how the U.S. plans to cut its enormous budget deficit, estimated at more than $1.5 trillion this year.

To show the world's leaders he's serious about get a handle on the deficit, Obama is presenting a plan that would require the U.S. and other nations to revamp the way they're managing their deficits.

Under the plan, trade-deficit nations such as the U.S. would have to increase their savings rates to consume fewer imports. And trade-surplus nations would be required to get their citizens spending more and depend less on export-led growth. 

"We can't go back to an era where the Chinese or the Germans or other countries just are selling everything to us, we're taking out a bunch of credit card debt or home equity loans, but we're not selling them anything," Obama said during a CNN interview broadcast Sunday.

Efforts to stabilize the U.S. banking system and kick-start a sluggish economy have driven the U.S. deficit into the stratosphere, raising concerns with China that America's deficits will undermine the value its $800 billion in U.S. Treasury bonds.

His efforts have already garnered support from many leaders such as British Prime Minister Gordon Brown.

"It's a compact for growth and jobs. It's a global compact and it's the first one that you would ever have and I believe there is substantial support for moving in this direction," Brown told reporters at a briefing Monday.

Meanwhile, in his weekly radio address, Obama signaled that he would be pushing sweeping reforms geared to ensure that the activities which led to the financial crisis would not happen again.

"We cannot allow the thirst for reckless schemes that produce quick profits and fat executive bonuses to override the security of our entire financial system and leave taxpayers on the hook for cleaning up the mess," Obama said.

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