US told to halt spending spree

[Stockholm]

Richard Adams in Washington
Thursday April 14, 2005

Credit card excess means economic turbulence, warns IMF

The International Monetary Fund told the United States to cut up its credit cards yesterday, in a stark warning that the world's largest economy needs to spend less to stave off potential turbulence.

"The United States needs to save more," said Raghu Rajan, the IMF's chief economist, at the launch of the World Economic Outlook, the IMF's twice-yearly report on the global economy.

According to the IMF report, international economic performance is being dangerously unbalanced by the US's twin budget and trade deficits sucking up a disproportionate share of world activity.

"The US consumer, who has bought the world out of recession, needs to rest tired feet and save more," Mr Rajan said.

more http://money.guardian.co.uk/news_/story/0,1456,1459166,00.html

[Zynx]

1. I hope the IMF doesn't hold its breath on that one.

[silverlib]

2. Is the IMF

on the same shaky footing with the US that the UN is on?

If not already, they may be now.

[thoughtanarchist]

3. Does this partially explain

the Wolfowitz appointment to World Bank?

An attempt to retain some creditor stability as we continue to run up impossible deficits?

[silverlib]

4. I certainly think so...n/t