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Imf Sees 2011 Us Budget Deficit Of Gdp At Highest 10.8% Of Developed Countries, Same As Ireland

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http://www.zerohedge.com/article/imf-sees-2011-us-budget-deficit-gdp-highest-108-developed-countries-same-ireland

The IMF has just released its latest "Fiscal Monitor" report which, not surprisingly, is as usual full of pretty charts that alas amount to pretty much nothing. What was surprising is the increasingly more antagonistic tone the IMF has taken with regard to the developed economies. In what could be a first, the IMF is starting to get increasingly realistic, and in the report notes that of all budget deficits in "selected countries", the US will hit the highest at 10.8%, the same as Ireland, and just ahead of Japan at 10%. And a direct stab at the US: "The United States needs to accelerate the adoption of credible measures to reduce debt ratios....Market concerns about sustainability remain subdued in the United States, but a further delay of action could be fiscally costly, with deficit increases exacerbated by rising yields." Other observations by the IMF: deficits in the Middle East could widen as governments increase subsidies to ease social tensions; higher food, fuel prices are likely to slow the pace of spending in emerging markets; US fiscal adjustments in 2012 are needed to put fiscal consolidation back on track. Oddly enough, the IMF which yesterday decided to trim GDP estimates very modestly even as it activated its SDR500 billion New Arrangements to Borrow line of credit, is Cottarelli's statement that the US still has a "lot of credibility." For now the rating agencies still seem to buy this load of BS.

And some other soundbites:

IMF'S COTTARELLI SAYS U.K. FISCAL ACTION ENTIRELY APPROPRIATE

IMF'S COTTARELLI SEES `A LOT OF UNCERTAINTY' IN JAPAN FISCAL

IMF'S COTTARELLI SAYS `CRITICAL' FOR JAPANESE TO CLARIFY PLANS

IMF'S MAURO SAYS HE WOULDN'T SAY SPAIN OUT OF THE WOODS

Look for more GDP cuts in the next several weeks, as Q3 GDP growth is cut to zero. And as we said before from Q3 to QE3 is only one phone call from Hatzius to Dudley away.

Everywhere you look the entire financial system is one massive ponzi game based on the expansion of debt. The question is how long can they keep this charade going before it implodes on it's own logic fail.

Exponential debt growth can never fail.

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The question is - will the Tea Party have the balls to make a stand?

Could the Repulicans cause a default? Would they?

I doubt it very much - they'd have too much to lose, but I think they cause a cliff hanger that will destabilize the markets in the short term.

Who knows where that will lead with so much going on in the world.

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http://www.zerohedge.com/article/imf-sees-2011-us-budget-deficit-gdp-highest-108-developed-countries-same-ireland

Everywhere you look the entire financial system is one massive ponzi game based on the expansion of debt. The question is how long can they keep this charade going before it implodes on it's own logic fail.

Exponential debt growth can never fail.

...time for Obama and the democrats to run the economy instead of ducking away from it ...before the IMF come in and run it for them .... :rolleyes:

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Everywhere you look the entire financial system is one massive ponzi game based on the expansion of debt. The question is how long can they keep this charade going before it implodes on it's own logic fail.

Not the entire system, but certainly the US is playing a game with a limited life span.

We at least are beginning to face up to the issues. They aren't.

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The question is - will the Tea Party have the balls to make a stand?

I doubt that anything major can be done to reduce the Federal deficit. The Democrats and the media will demonize the Republicans, if they try to cut anything important. They'll say:

- "Republicans are genocidal racists at heart, and want to kill off minorities through starvation and lack of medical care"

- "Republicans want to throw women and minorities under the bus"

- "Republicans want old people to freeze, starve, or die from untreated illness"

- "Republicans are 'worse than Hitler'" (I remember this one from decades ago, when they tried to scale back the annual increase in a school lunch aid program)

- "Republican congressman are guilty of Crimes against Humanity and must be brought before an international tribunal"

- etc.

Some of this has already happened, even with the trivial cuts the Republicans tried to make so far. I expect the deficit to increase each and every year from now on, and nothing can be done about it.

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I doubt that anything major can be done to reduce the Federal deficit. The Democrats and the media will demonize the Republicans, if they try to cut anything important. They'll say:

- "Republicans are genocidal racists at heart, and want to kill off minorities through starvation and lack of medical care"

- "Republicans want to throw women and minorities under the bus"

- "Republicans want old people to freeze, starve, or die from untreated illness"

- "Republicans are 'worse than Hitler'" (I remember this one from decades ago, when they tried to scale back the annual increase in a school lunch aid program)

- "Republican congressman are guilty of Crimes against Humanity and must be brought before an international tribunal"

- etc.

Some of this has already happened, even with the trivial cuts the Republicans tried to make so far. I expect the deficit to increase each and every year from now on, and nothing can be done about it.

...you want it all to be like Detroit...?.... :rolleyes:

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Some of this has already happened, even with the trivial cuts the Republicans tried to make so far. I expect the deficit to increase each and every year from now on, and nothing can be done about it.

They could increase tax levels on the richest 10% of Americans to Clinton levels, equalise capital gains and income tax and cut the military budget by 45% and it would be solved.

Putting all the costs on the poorest 50% of society is fairly sick and deserving of contempt.

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...time for Obama and the democrats to run the economy instead of ducking away from it ...before the IMF come in and run it for them .... :rolleyes:

Not sure how that would work I doubt the IMF have the money to bailout the US and as the US has been the largest contributor to the IMF I see a bit of a problem.

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I doubt that anything major can be done to reduce the Federal deficit. The Democrats and the media will demonize the Republicans, if they try to cut anything important. They'll say:

- "Republicans are genocidal racists at heart, and want to kill off minorities through starvation and lack of medical care"

- "Republicans want to throw women and minorities under the bus"

- "Republicans want old people to freeze, starve, or die from untreated illness"

- "Republicans are 'worse than Hitler'" (I remember this one from decades ago, when they tried to scale back the annual increase in a school lunch aid program)

- "Republican congressman are guilty of Crimes against Humanity and must be brought before an international tribunal"

- etc.

Some of this has already happened, even with the trivial cuts the Republicans tried to make so far. I expect the deficit to increase each and every year from now on, and nothing can be done about it.

Interesting that you think reality will leave them be to do that.

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well the US has at least got some real industry and a has spent a lot of money on harvesting I.P. over the years and has become very protectionist about it.

So they may eventually get economic growth if they can get all the bankers to shutup and go away.

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I doubt that anything major can be done to reduce the Federal deficit. The Democrats and the media will demonize the Republicans, if they try to cut anything important. They'll say:

- "Republicans are genocidal racists at heart, and want to kill off minorities through starvation and lack of medical care"

- "Republicans want to throw women and minorities under the bus"

- "Republicans want old people to freeze, starve, or die from untreated illness"

- "Republicans are 'worse than Hitler'" (I remember this one from decades ago, when they tried to scale back the annual increase in a school lunch aid program)

- "Republican congressman are guilty of Crimes against Humanity and must be brought before an international tribunal"

- etc.

Some of this has already happened, even with the trivial cuts the Republicans tried to make so far. I expect the deficit to increase each and every year from now on, and nothing can be done about it.

To take a more local approach :

I doubt that anything major can be done to reduce our deficit. Labour and the media will demonize the Conservatives, if they try to cut anything important. They'll say:

- "Conservatives are genocidal racists at heart, and want to kill off minorities through starvation and lack of medical care"

- "Conservatives want to throw women and minorities under the bus"

- "Conservatives want old people to freeze, starve, or die from untreated illness"

- "Conservatives are 'worse than Hitler'" (I remember this one from decades ago, when they tried to scale back the annual increase in the school lunch program)

- "Conservative MPs are guilty of Crimes against Humanity and must be brought before an international tribunal"

- etc.

Some of this has already happened, even with the trivial cuts that the Conservatives have tried to make so far. I expect the deficit to increase each and every year from now on, and nothing can be done about it until Labour regain power and have to call in the IMF within 12 months.

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Everywhere you look the entire financial system is one massive ponzi game based on the expansion of debt. The question is how long can they keep this charade going before it implodes on it's own logic fail.

Question is can it keep going longer than you can keep posting, and by the time we know the answer will anyone care?

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Question is can it keep going longer than you can keep posting, and by the time we know the answer will anyone care?

Unkind and not worthy of you, Sceppy.

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Not sure how that would work I doubt the IMF have the money to bailout the US and as the US has been the largest contributor to the IMF I see a bit of a problem.

...that may be so ...but if you are a member of the IMF and wish it to continue ..and allow the IMF to apply best practice to other countries you need to follow and apply these same values.... :rolleyes:

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Interesting that you think reality will leave them be to do that.

I suppose they'll continue to spend more and more until some external force stops them. At some point, maybe no one will lend them anything and the money will become worthless. The various welfare and entitlements programs would end up paying out nothing in real terms, and all the recipients freeze, starve, die off, etc. Federal employees and the military might just quit (since they're getting no real pay), so governemnt services just stop. You end up with an austerity program without really trying?

It's interesting to see external forces compelling some states make actual cuts, though. There's been a lot of squawking from civil service unions and other special interests (radio ads, etc.), but the cuts and layoffs actually get passed, even in Democrat-controlled states.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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