The blind leading the blind...

Because "coordinated action" has had a wonderful track record as of late. Cutting deficits in an environment of debt-deflation.

U.S. Treasury Secretary Timothy F. Geithner urged Group of 20 leaders at a summit this weekend in Canada to commit to policies that ensure the global economic recovery won’t be derailed.

Countries, particularly Japan and others in Europe, need to do more to boost domestic demand instead of just looking for ways to slash their budgets, Geithner said at a press conference in Toronto. China has already adopted such growth-oriented policies, while the U.S. is doing its part to rebalance the global economy by boosting national savings and investment, he said.

Other major economies are not doing enough to encourage growth after the worst financial crisis since the Great Depression, Geithner said. He said only a few countries, such as Greece and Spain, must reassure markets by cutting spending now, and he said growth would be a central focus of G-20 meetings today and tomorrow.

Japan and other European countries haven’t yet produced “a set of policies that will again give everyone confidence that you’re going to see stronger domestic demand growth in those countries going forward,” Geithner said. “That’s a very important debate. That’s a much more complicated debate than the simple question of how fast people move to restrain on the fiscal side.”