IMF presses US to cut debt

AFP on Yahoo ^ | 7/8/10 | Andrew Beatty

[NormsRevenge]

WASHINGTON (AFP) – The International Monetary Fund on Thursday urged the United States to rein in its ballooning budget deficit without putting the "modest" economic recovery at risk.

Amid jitters that high levels of unemployment may force a double dip recession, the IMF warned the slow US recovery would continue and that debt problems loomed.

"The central challenge is to develop a credible fiscal strategy to ensure that public debt is put -- and is seen to be put -- on a sustainable path without putting the recovery in jeopardy," an IMF report said.

The balance between spending to stimulate the economy and putting budgets in order has vexed countries around the world as the recovery has looked more and more precarious.

President Barack Obama has plowed nearly a trillion dollars into the economy to spur economic growth, exploding the US deficit to a level that many believe is unsustainable.

The IMF praised US efforts to cut the long-term deficit through health system reform, but said more needed to be done now.

"The authorities' commitment to halve the budget deficit by 2013, and intention to stabilize public debt at just over 70 percent of GDP by 2015 are welcome, although much remains to be done to achieve these aims."

At a recent summit of the Group of 20 leading economies in Toronto, Obama vowed to halve the deficit within three years.

But the IMF projected that the deficit will stand at 64 percent of gross domestic product this year, rising to just over 96 percent by 2020.

[GeronL]

Government spending does not stimulate the economy

[NoLibZone]

Don’t economists believe that gov spending stimulates the economy?

[fhayek]

The IMF praised US efforts to cut the long-term deficit through health system reform, but said more needed to be done now.

Did they also praise fairies and leprechauns for their efforts to stimulate the economy?

[cranked]

Was it not just a week or so ago that Jack Squat Barry said that “we” needed to spend MORE?

IMF is a frakin day late and dollar short, especially when dealing with a bunch of Keynesian economics idiots stuck on stupid libtards and progressives of this lamearse Jack Squat idiot-ridden administration and its lamestream media mouthpieces. Hope that is clear enough for the IMF to understand.... =.=

[BenKenobi]

[quote]
intention to stabilize public debt at just over 70 percent of GDP
[/quote]

Public external debt?

I remember days when the US was in the 40s and Canada was at 110 percent.

I predict that the US will be at 100 percent by the end of the year.