Monday, September 14, 2009

IMF wants 20% cut in govenment workers

Serbia 'cuts jobs for IMF loan'

We're well and truly screwed if we need IMF help if Serbia is anything to go buy! They're 'only' running a deficit of 4.5%, yet the IMF are demanding they cut a fifth of the public sector workforce. What would the IMF demand if we wanted/needed a handout?

Posted by pauly_boy @ 06:11 PM (787 views)
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7 thoughts on “IMF wants 20% cut in govenment workers

  • general congreve says:

    The IMF will demand what is needed. The UK is now poor, that is a fact, wages must fall for employment to go up and everyone must get used to a lower standard of living. Welcome to ‘Broke Britain’.

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  • general congreve says:

    The IMF will demand what is needed. The UK is now poor, that is a fact, wages must fall for employment to go up and everyone must get used to a lower standard of living. Welcome to ‘Broke Britain’.

    Reply
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  • How likely is it that we will go to the IMF for a support? Its a key question.

    Please be serious, it will be a big factor in House Prices if we need to get bailed out and public servants cut….

    It will be catastrophic for NuLabour. They will be shown up as economic dunces!

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  • “How likely is it that we will go to the IMF for a support?”

    So far, we seem to be getting away with our deficit. I recall reading a suggestion in the “Burning Our Money” blog that the bond market has already written off NuLabour and will wait to see what Cameron does when he inherits the mess. With the unions already making threats if their special interests aren’t protected and unemployment probably rising into 2010, the future looks ugly.

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  • “How likely is it that we will go to the IMF for a support?”

    Given public sector costs/SIZE/commitments Vs private sector employment (much over price financials/distrusted services) I would be amazed if we are not joining the IMF queue right after the next election without some MASSIVE cuts!

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  • I have just read the book “Shock Doctrine” and I am very sceptical about the purpose of these loan “conditions” from the IMF. Seems like a repeat of the other debacles like the Soviet Union and South Korea.

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  • IMO it is very likely. It seems unlikely now but it will only take a small series of events to trigger a trip to the IMF – effectively once the UKs credit rating has been downgraded. This will happen when it becomes apparent that the UK will not be able to honour its debts without major devaluation and I think this will come in the form of a number of bad news items i.e. expenditure up, tax receipts down, unemployment up, sales down.

    Facing facts – the government have given away over a trillion pounds to the bank which now needs to be covered. With fewer house sales stamp duty receipts will be down. With higher unemployment income tax will be lower and the government is having to pay the interest on mortgages for those unemployed people as well as other benefits. London is the hub for all sorts of industry most affected by these credit crunch events (shipping/finance). It really is screwed, and a it won’t take too much more bad news for it to become painfully apparent. When the true extent becomes known we will be downgraded and won’t be able to borrow money as a nation. Interest rates will fly and it won’t be long before we go begging to the IMF.

    I really can’t see any way out of this. It is possible that if the government prints enough money (i.e. stealing from savers and the prudent) it may be able to keep the UK afloat long enough – but I doubt if this is really possible

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