Jim Cramer on MJ says if we don't get serious about the deficit the IMF will be here within 10 years

Apparently the Honeywell CEO was on CNBC talking about this. Cramer said we used to talk about putting the debt on our kids and grandkids but he doesn't think that will be true anymore.

If the IMF forces austerity measures on us what can we expect?

They are just trying to get rid of SS and Medicare.

I love how people talk about "austerity measures" in Ireland and Greece, as if it's this mystical thing. Austerity measures are nothing but increases in taxes and reductions in government spending - or just what the deficit commission is proposing. The difference, I guess, is that the IMF will propose austerity measures at the barrel of a financial gun, so to speak, making them a condition precedent to receiving bailout funds or emergency loans. In this sense, there's no choice for those accepting the funds. But make no mistake about it: the deficit commission is proposing austerity measures. That's what they are, and where we are.

Besides, since when has Jim Cramer ever been right about anything?

The commissions recommendations don't look at current retirees though while the measures in Europe are for now. There will be no time to prepare.

with the cost of living even worse than it has the past 27 years.

They can't raid it like they are demanding the Irish do. Good luck to them holding our non negotiable debt.

Offer up many of our resources to foreign companies.

So the water that flows basically freely from your tap might someday soon cost you six bucks for a bath tub full.

Oil is starting to get pricey again also.

But they may benefit from our coal or natural gas.

That's the beauty of the idea.

They would simply become the owners of this resource, which we would still use.

Only we would be like the people of Bolivia, when Bechtel helped their government out, by "privatizing" the water utilities there.

In Bolivia, it is thought that each Senator was paid about one million bucks (US.) for the deal to go down. Only because Bolivians rallied in the street, after they realized that Bechtel was making water way too expensive, did Bechtel give up and leave.

Here the Chinese would have to come up with five or ten million bucks per Senator, but I am sure they'd do it for having water rights.

Then we can be the peons working and paying them.

To invest here?

Why would they continue to have their prisoners build us our cheap toys and cheap stationary supplies, tools, hoses, cables, furniture, clothes, decorative items et al, if not for the fact that our country has a great deal of resources, all of which can be had for the taking.

he's a pimp.

lapse.

he's a lying pimp and a grifter & grafter, & no one with any sense listens to anything he says.

But even El Erian thinks the bond vigilantes might come here. Roubini too.

ps: not sure where you got the "bond vigilante" meme. but i doubt you really know the implications.

The bond vigilantes attack, the spreads widen, then who wants the debt? Then the IMF shows up.

And Roubini talked about the vigilantes in May along with El Erian and Bill Gross:

http://www.marketwatch.com/story/sovereign-debt-vigilantes-put-europe-on-notice-2010-05-17

http://www.businessweek.com/news/2010-05-19/roubini-says-u-s-may-face-bond-market-vigilantes-update1-.html

Nov 21, 2010
Bond Vigilantes And The US Government Bonds.
"The bond vigilantes have not woken up for the US treasury market—yet."

Nouriel Roubini - November, 2010

http://nourielroubiniblog.blogspot.com/2010/11/bond-vigilantes-and-us-government-bonds.html

So I have been concerned about the vigilantes but what threw me for a loop was what could happen after the bond vigilantes strike. I guess it never occurred to me the IMF would be the ones dictating how we cut spending. I've always hated the deficit because of what it does to our kids but now I realize it really will fall back on us.

This morning’s CPI data along with several other inflation reports shows that inflation remains non-existent.

This is still a disinflationary environment and a 10 year treasury at 3% is clearly reflective of that.

The 50 bps correction is nothing more than the bond market righting itself after the QE2 hysteria. It does not reflect some existence of “bond vigilantes”.

And it certainly does not reflect higher future borrowing costs for the USA.

http://pragcap.com/bond-vigilantes-back

all the world leaders at the G-20 in Toronto.

...IMF = small horse.

Are we so arrogant we think we can borrow funds and take on more and more debt with impunity?

the masses in order to steal the few pennies they haven't gotten their greedy fucking hands on, yet.