IMF: U.S. Budget Deficits Threaten World (Bush has found the WMD!!!)

IMF: U.S. Budget Deficits Threaten World

WASHINGTON - Uncontrolled U.S. budget deficits would pose a serious threat to global prosperity in coming years as rising interest rates depress economic growth in the United States and around the world, the International Monetary Fund (news - web sites) warned Wednesday.

The IMF released a new analysis that predicted if nothing is done to get control of the soaring U.S. deficits, it would shave global economic output by 4.2 percent by 2020 and reduce U.S. economic growth by 3.7 percent during the same period.

IMF economists said much of the adverse impact would occur because of increased borrowing demands in the United States to finance the budget deficit. This would drive up U.S. interest rates and interest rates in other countries as the global supply of available capital is reduced, they said.

"The rest of the world is affected seriously by the U.S. fiscal deficit," IMF chief economist Raghuram Rajan told reporters in a briefing on the new report.

more...

IMF: U.S. Budget Deficits Threaten World

George Bush stated today his famous words "It's Clintons Fault"

On a related matter the President would only say: "What?..Me Worry?

of our economy is going to have thanks to these incompetents. You know, if Kerry gets elected and the economy collapses because of *, you know who will get the blame.

They issued the same warning in January. It's not as bad as we think it is. It's MUCH worse.