London, United Kingdom (PressExposure) July 05, 2010 -- “Delta Continental” analysts believe that the failure by the G20 nations to agree on whether to maintain government spending or cut deficits could pose a serious risk to the global economic recovery.

President Barack Obama and US Treasury Secretary, Tim Geithner, failed to convince European nations and other member states to continue their spend now – pay later policies as speculation mounts that the United States may be considering another round of quantitative easing.

“Delta Continental” said that a spate of poor US economic numbers has raised fears that the economic recovery may be stalling as the effect of the huge $800bn stimulus package that Mr. Obama fought so valiantly for wears off.

European economies are keen to avoid a Greek-style debt crisis unfolding in their own countries and have taken steps to reassure markets that they are putting their fiscal house in order.

“Delta Continental” suggested that the US has yet to begin addressing deficit reduction given the fact that it can still borrow money cheaply. The firm said that the US government should remain mindful of the fact that China is its largest creditor and there would come a time when 3% over 10 years would be insufficient to compensate for the risk of holding the debt of country which is running the largest deficit in its history.

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