When the profligate leftists at the International Monetary Fund start to worry about a nation’s economy, you know there’s a problem.
But worried they are. Worried that the geniuses in the Obama administration have no rational strategy to stop our piling up public debt and that the policies they do have may trigger another worldwide economic crisis.
Financial Times has the depressing details:
In an unusually stern rebuke to its largest shareholder, the IMF said the US was the only advanced economy to be increasing its underlying budget deficit in 2011 at a time when its economy was growing fast enough to reduce borrowing.
To meet the 2010 pledge by the Group of 20 countries for all advanced economies – except Japan – to halve their deficits by 2013, the US would need to implement tougher austerity measures than in any two-year period since records began in 1960, the IMF said. In its twice-yearly Fiscal Monitor, the IMF added that on its current plans the US would join Japan as the only country with rising public debt in 2016, creating a risk for the global economy.
Carlo Cottarelli, head of fiscal affairs at the Fund, said: “It is a risk that if it materialises would have very important consequences … for the rest of the world. So it is important that the US undertakes fiscal adjustment in a way sooner rather than later.”
The only problem with the IMF’s assessment is that it ignores the distinct possibility that the Obama administration wants to trigger another global meltdown.
No?
Source: Financial Times
