IMF paints grim picture of fiscal tightening needs(next year will be bloody)

Reuters ^ | 03/20/10

[TigerLikesRooster]

IMF paints grim picture of fiscal tightening needs

Sat, Mar 20 2010

BEIJING (Reuters) - Developed countries with big budget deficits must start now to prepare public opinion for the belt-tightening that will be needed starting next year, the No. 2 official at the IMF said on Sunday.

John Lipsky, the International Monetary Fund's first deputy managing director, said the scale of the adjustment required was so vast that it would have to come through less-generous health and pension benefits, spending cuts and increased tax revenues.

"Addressing this fiscal challenge is a key near-term priority, as concerns about fiscal sustainability could undermine confidence in the economic recovery," Lipsky told the China Development Forum.

"Already in several countries with particularly high debt and deficits, sovereign risk premia have risen sharply, imposing strains for the countries affected and raising risks of possible broader spillovers," he said in remarks prepared for delivery to the conference..

For most advanced economies, maintaining fiscal stimulus in 2010 remains appropriate, but consolidation should begin next year if the global economic recovery remains on track.

First, policymakers should already be making it clear to their citizens why a return to prudent policies is a necessary condition for sustained economic health, Lipsky said.

[dirtboy]

Developed countries with big budget deficits must start now to prepare public opinion for the belt-tightening that will be needed starting next year,

And what are the Beltway Dems doing? Adding a new trillion-dollar-plus entitlement.

[Principled]

So we’re gonna spend trillions on something we don’t even want and something that will destroy our Country.

0bama must be gone.

[TigerLikesRooster]

P!

[Diana in Wisconsin]

“First, policymakers should already be making it clear to their citizens why a return to prudent policies is a necessary condition for sustained economic health...”

Sure. Good luck with that, Sparky.

Gimme! Gimme! Gimme!

Jerks. (Congress, 0bama voters, et al.)

[Red in Blue PA]

Prepare now with the 3 G’s:

Guns

Gold

Generators

[rbg81]

That was my thought. What belt tightening? These people will spend us off a cliff, then cofiscate the property of anyway judged to have “excess wealth” to they can keep giving benefits to poor & illegals.

[tbw2]

I think there will be riots if unemployment and welfare checks bounce.

[bruinbirdman]

"Gimme! Gimme! Gimme!"

There's still plenty of time between now and next January for the socialists to disperse the spoils, eh?

And don't forget all those Alinsky commissars floating around the cabinet bureaucracies planting their anti private property/free enterprise regulations.

Those dispensers of non-confirmed and uncontrolled socialist political agendas will be around until at least 2013.

yitbos

[GOPJ]

Thanks for the ping.

[Diana in Wisconsin]

Gee. If your intent was to depress me...you WIN, LOL!

I know. It’s really awful. I’m already so far underground that I’m nose to nose with the earthworms. ;)