I M F Turn Bytchy And Warn That Our Promises Are Unsustainable

[Realistbear]

http://uk.finance.yahoo.com/news/imf-warns-britain-must-reform-its-public-finances-tele-134bce5ad638.html?x=0

IMF warns Britain must reform its public finances

Philip "Balders" Aldrick, 13:56, Wednesday 6 October 2010

Britain needs wholesale reform of its public finances to address the soaring costs of pensions and other spending commitments as well as the aftershock of the financial crisis, the International Monetary Fund has indicated.

The next global crisis is likely to be born of the

unsustainable promises Governments have made

, which will threaten to undo the work on deficit reduction, the IMF said in its World Economic Outlook . The net present value of future increases in health care and pension spending is many times larger than the increase in public debt due to the crisis.

Britains pension liabilties alone total £3.9 trillion £1.2 trillion for public sector workers and £2.7 trillion for the state pension. The warning came as the IMF cut its growth forecast for the UK next year to 2pc, from its 2.1pc estimate in April. It expects growth this year to be 1.7pc, 0.5pc higher than the previous forcast.

IMF blow hot and cold--one week they are thrilled with the recovereh and now its all unsustainable.

They might as well get it over with and say its all going to crash because there is a Western world black hole in the amount of at least $15tr and QE has no hope of filling it.

[non frog]

......

They might as well get it over with and say its all going to crash because there is a Western world black hole in the amount of at least $15tr and QE has no hope of filling it.

I think you are overly pessimistic. We just need to fast-track Iceland into the EU and the Euro and we will be back into boom times exporting fish to the third world.