Posted on 06/08/2024 11:15:42 AM PDT by marshmallow
Known for many decades after the Second World War as a key tool for putting economic pressure on developing nations and competitors of the US-led liberal rules-based order, the International Monetary Fund took a major step toward greater autonomy after successfully squashing a surprise plot by the Biden administration to oust its director in 2021.
IMF deputy managing director Gita Gopinath has given Washington an unusually blunt warning about its debt and spending levels, demanding that the United States and other developed economies take steps to get debt under control.
“For the US, we see ample ground for them to reduce the size of their fiscal deficits, also given the strength of the US economy,” Gopinath said in an interview with the Financial Times published Saturday.
“The temptation to finance all spending through borrowing really is something that countries should avoid,” the official urged, emphasizing that Western economies have “no way of getting around” “fundamental reforms,” including to their social sectors and in the realm of taxation.
Gopinath’s comments follow on the heels of an IMF forecast in April warning that America’s ballooning debt and deficit were “out of line with what is needed for long-term fiscal stability,” and that the projected US federal deficit of 7.1 percent for 2025 was more than three times the 2 percent average showing by other advanced economies, with US public debt expected to more than double by 2053.
“Loose fiscal policy in the United States exerts upward pressure on global interest rates and the dollar,” IMF Fiscal Affairs Department director Vitor Gaspar told reporters back in April. “It pushes up funding costs in the rest of the world, thereby exacerbating existing fragilities and risks.”
US debt and spending “raises short-term risks to the disinflation process, as well as longer-term fiscal and financial......
(Excerpt) Read more at sputnikglobe.com ...
BUT BUT BUT. Biden said he cut the deficit by trillions. How can debt be rising???
What?? And get rid of our give away programs?? Impossible!
Modern monetary theory teaches us that debt is not an issue if it’s owed within a country’s sphere of economic activity.
Since economic activity is worldwide debt cannot be an issue.
The “experts” said so.
The U.S. pays for about 20% of the IMF’s funding, even with 25 member countries - good place to start cutting
Well, this is coming from the Impossible Missions Force.
IMF
Oh, the Impossible Mission Force
If that happens, we won't be able to get away with deficit spending.
Sputnik news is an official Russian propaganda provider.
But sometimes they’re right and this is one of those times.
IMF Calls on US to Get Its Gargantuan Debt Under Control
= = =
What! We owe money to Garantua? Is that in South or Central America?
Ditch and that mini JBoner disagree.
Deficit Spending is totally RINO.
You can’t defund the IMF when it is used for kickbacks to connected American communists of the Biden Regime.
Is there a word for 'stupid arrogance'? Hubris is more like unwarranted arrogance. Stupid arrogance is what prevails in Washington. The old saying is as true now as ever. That whic cannot go on forever, won't.
Obviously, they have issues in the Eurozone. Their economy is just not as dynamic as U.S. But I think we're at the point now that the euro is starting to look better than the dollar. At least, they have adults running the E.U. and they haven't been able to inflate their currency as much as we have been doing with the dollar.
Investors will abandon the dollar in a few years. That will force the American economy to crash. And the American politicians will have to make severe cuts to our entitlements (Social Security and Medicare).
That's why there is no point for Republicans to propose entitlement reform. It's not possible at this point. All we can do is to wait for the day after.
I even looked in the https://www.imf.org/en/Topics/low-income-countries section for it.
Actually, I looked there first but I can't find it anywhere.
Is this more fake news from Russia?
Translation: “We at the International Money Fund (IMF) need you to get your debt under control so you can continue sending U.S. taxpayer money to us.”
Creating money out of thin air/electrons is just another government tax. Most of my hobbies have seen the cost of equipment double. Food and the rest also have been massively ‘taxed’ with inflation. Welcome to communism World.
But let's not solve a problem when there is time and resources. Let's wait until skinheads drive around in dune buggies scrounging for gasoline. Just my humble opinion....
It's beyond our control. Hard to say when. But I would guess in 5-10 years from now.
The sad part is, THEN they will all scramble. I don't know if the IMF or the World Bank get involved. They will probably try. Maybe a coalition of G7 countries with a bail out.
I don't think that's possible. Our economy is too large. So I don't think G7 will be able to help us out. Maybe China. But they have their own issues as well. Their demographics are collapsing due to one child policy so they may not be in the position to help us out.
I agree. All attempts will probably by too little, too late. I wish it were not so.
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