IMF Warns of Serious Consequences if U.S. Budget Deficits Not Controlled

IMF Warns of Serious Consequences if U.S. Budget Deficits Not Controlled


By: MARTIN CRUTSINGER, AP Economics Writer
Submitted: 4/15/2004

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 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.
(snip/...)

http://maysville-online.thimblemedia.com/article.asp?catid=25&articleid=5128

the world. Was this just one of George's bi-polar moments?

Hope John Kerry has LOTS of antacids on hand. It will take a wise and dutiful, and patient group of America's finest to restore trust and sensibility to our White House and all it stands for.

George Bush shoudl be censored now. Not allowed to make anymore decisions. He is out of control.

Guess who runs that show. Ain't going to happen with DeLay and Co. running that house. Let the sexiest president in 25 years get a blow job and they will spend billions of dollars and every waking hour of the day to impeach him.

Never think that. This "one man" was only the face in front, in fact he certainly had nothing whatever to do with the decision making process in implementing his policies. Others in his admin had the ideas (Cheney anyone) and the Repub congress signed on board too.

In fact, there are several Democrats who participated willingly in this idiocy. Put it down to fear if you like but vote for it they did. Some of them anyway.

Don't forget the boneheads out here in the fields who voted for their King either. They cheered the tax cuts for the wealthy, even if they only received a pittance themselves. Hell, some of them got nothing but they cheered anyway. All the while they ignored the huge spending boondoggles that ballooned the deficit, placing our next generation so far into debt they may never escape.

The situation is dire. Remember that in order to even hope to pay down the debt and remove the danger relies heavily upon a not just recovering but a booming economy. If the debt catches up to us first the economy will slide into recession and even depression whereupon we will be faced with drastic cuts across the board in federal spending, just when we can least afford it, or an explosion in the very same debt that put us in that position.

and Bush is "stay'n the course".

Without doubt and without even a whiff of being a conspiracy theorist - this has the air of planned malignant neglect for a purpose. LIHOP or MIHOP - one ofr the other or both.

the last couple of days. The Perfect Storm is gathering folks. We did it to Russia, now the world gives the US all the rope needed to hang. As it went in Argentina, so shall it go here.

What a horrid mess. We all tried to warn them. Remember the thousands who went to the streets to protest? Those thousands who made their protests known via the Internet? Those who protested the staged election?

My God, there has to be an answer to this mess. Somewhere.
Could any of those who "bought" the White House lies ever have imagined that those they trusted would eventually lead us to this place in hell?

I am so bothered by those who speak about this WH like they are great heroes.
I cannot comprehend their mentality. It is really very foreign to understand WHY they believe what they do when all around us is tragedy and grief for humankind.
It is appalling.

somebody feel my forehead -- is it warm?
well any way i'm certainly not going to make a habit of agreeing with them -- but in this case they are right.
bush is about to sink the whole damn ship and boy howdy he had did have a lot of help.
the corporate facist are about to have their cake and eat it too.

discussion of the mess the rightwing has created here at home. I guess its all to complicated for the average American Idol viewer to understand? :shrug:

warning from the IMF towards the US? :shrug:

Bush is fucking done. When the globalist corporate masters turn on you, you're proper fucked.

-C

the economy, Iraq, the WTC .....

Quite literally, as long as the rest of the world is stupid enough to keep accepting our worthless IOUs in exchange for real goods, we'll be juuuuuuust fine...

:eyes: