IMF slams U.S. over budget

[Robbien]

Global lending agency says government assumptions too optimistic, not doing enough to fix deficits.
August 27, 2003: 6:16 AM EDT



MILAN, Italy (Reuters) - The International Monetary Fund is set to reproach the United States for being too optimistic in its assumptions on government spending and revenues and lacking a coherent budget plan, according to a summary of a draft report.

The report "criticizes the U.S. government's excessively optimistic assumptions regarding the development of overall state spending and revenues and the lack of a medium-term concept to consolidate budgets and reform the social insurance system," the draft said.

The draft, a copy of which was obtained by Reuters, also says monetary policy-makers in industrial nations should continue to support the economic upturn.

News of the IMF report comes a day after a congressional budget agency forecast a federal budget deficit of $480 billion in 2004, a record shortfall that could pose problems for President Bush as he seeks re-election.

Bush administration officials have said that budget deficits of that size are temporary and manageable and will shrink as economic growth accelerates in the United States.


http://money.cnn.com/2003/08/27/news/economy/imf_deficit.reut/index.htm

[bpilgrim]

1. welcome to the third world...

thanks neo-cons :puke:

guess we'll just have to ignore them, too... probably infiltrated by commies anyways, eh rush? and shoot they have years of practice under their belt now.

:crazy:

peace

[Paschall]

2. "lack of a medium-term concept"

I think that's IMF-speak for "don't have a friggin' clue!"

And by the way, what would that "social insurance system" be? Besides bankrupt I mean.

[underpants]

6. Oh pishaw this is just FOREIGN fuzzy economics

They don't understand the supplyside and looting of the treasury principles that the right firmly believes in and the American people aren't told about.

That's all this is.

[benfranklin1776]

3. Damn that is shameful.

I am NO fan of the IMF since its policies have done little to alleviate the poverty of impoverished nations and, as Joseph Stiglitz is fond of noting, has caused serious harm through its rabid insistence on fiscal austerity at the expense of improving the quailty of life in those nations. However this should ring loud clear warning bells to everyone who cares about their future and the future of this country. Junior's idiotic fiscal policies have reduced us to the level where we are being lectured to by the IMF, like they do to all poor debtor nations about getting our fiscal house in order. Will we next be subjected to austerity measures? Of course that is Junior's and Grover's objective to strangle government so I suppose that would help their cause politically.

On edit: I had a Bush moment. I meant to say debtor not creditor sorry.

[salin]

4. Important term: Bush has returned us to "Creditor Nation" status

Repeat often.

[benfranklin1776]

7. Yes I agree it should be repeated.

I am sorry, I meant to say debtor, since we are the borrower, not creditor, since we have no money to lend, but had a moment of Bushian stupidity. Yes we should remind often that there are others holding the notes on much of our debt who as many debtholders are wont to do will demand payment on increasingly onerous terms.

[salin]

9. you are right... returned to "DEBTOR Nation"

Remember how big of a deal in, I believe, the 1992 elections (maybe it was '88) that foreign investors - especially Japanese investors held a great deal of valuable real estate in NYC?

How would the public feel if they realized that a good chuck of US DEBT that we keep piling up at record rates is held (ie WE OWE THEM) by foreign investors. There has to be a way to sound bite that fact.

[benfranklin1776]

10. Yes I agree.

In 2004 Junior will again try to sell everyone on the idea of a free lunch, tax cuts for the wealthly with
no deep cuts in popular programs like Social Security. That myth has to be exploded as well as showing
that people's children will be stuck picking up the tab for his orgy of tax cutting for the country club set.
People understand budgeting since they have to do it themselves. they can see the danger of
piling up mountains of debt with no real way to pay for it.

Also there is the interest factor and the sizable chunk of the federal budget that goes every year to pay for
the interest payments on this debt. During the time of George Sr. it was 1/4 of the whole budget. It
will soon be approaching those levels again. President Clinton argued successfully that every dollar spent on interest was one less to spend on education and health care and improving communities.

[jiacinto]

5. This isn't good

Aren't these press releases usually reserved for third world countries?

[izzie]

8. We are a third world country run by a junta of zolots

I say that as I wrap my flag tightly around my self.

[aquart]

11. Well, the little idiot has gone and done it.

We used to be a superpower.

[damnraddem]

12. Guess what, Dubya -- deficits matter!

This is recognized internationally, even if the yahoos in the WH can't figure it out.

[Robbien]

13. Anyone have a Euro in exchange for my dollar? n/t