To the Point

International Monetary Fund Issues Warning on US Spending

With the US deficit is expected to reach $400 billion this year, the International Monetary Fund this week issued a sharp warning about America's non-stop spend-and-borrow spree. The IMF warned that tax cuts and budget deficits pose a "significant risk" of causing a worldwide fiscal crisis. How real is the fiscal danger? What does the debt mean for the average American and for the rest of the world? What does it mean in an election year for Republicans who promised smaller government? Guest host Sara Terry looks at America's rising deficit and growing trade imbalance with economists at Goldman Sachs and the Center for Economic and Policy Research, a Republican policy and management consultant, an expert on government growth at the CATO Institute, and an official at the White House Office of Management and Budget. Making News: Terror Alert Lowered to Yellow Secretary of Homeland Security announced today that the nation's terror alert will be lowered to yellow, a step below the orange level that has been in effect for nearly three weeks. Tom Ridge said he based his decision on a careful review of intelligence and diminished threat conditions. Josh Meyer, who covers terrorism for the Los Angeles Times, says officials seemed to be responding to more specific threats than ever before. Reporter's Notebook: Forbes Family to Auction Collection of Faberg- Eggs They began as an Easter tradition to become legendary miniature masterpieces. This spring, nine of 50 Faberg- eggs made for the last Czars of Russia will be auctioned at Sotheby's. They come from the collection of the late magazine publisher, Malcolm Forbes. David Redden, vice chairman of the prestigious New York auction house, describes some of the opulent oeuvres and traces their journey through history.