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This post originally appeared at The Fiscal Times.The U.S. is leading most of its major trading partners in burrowing out of the mountain of private sector debt that nearly destroyed the global economy and is still retarding the economic recovery, a new report says.
However, while the private sector deleveraging is well underway, the renewal of robust global growth will depend on a credible long-term plan for reducing the government’s share of total national debt that continues to mount, the report said.
Those conclusions echo recommendations repeatedly offered by Federal Reserve Board chairman Benjamin Bernanke before various Congressional oversight committees and during his biannual reports on the state of the economy. Former Fed chief Paul Volcker last week added his voice to the chorus saying the most pressing issue facing U.S. lawmakers is the need to enact a long-term plan for reducing fiscal imbalances that avoids an immediate sharp contraction in government spending.