Title shamelessly lifted from Ed Morrisey’s post on the International Monetary Fund warning the US about its debt:
You remember the IMF, right? It’s the organization that had to partner with the EU in order to rescue Greece from its massive debt and collapsing bond structure — a task accomplished with around $7 billion from the US. Now the IMF has a warning for the US as well, that our own debt is Greecing the skids to a similar but much more disastrous conclusion in the long term:
“U.S. officials must act quickly to control government deficits or face slower growth and even more difficult choices in the future, the International Monetary Fund said Thursday in a report criticizing the tepid U.S. response to its rising public debt.”
“The IMF warning comes as federal officials grapple with a congressional projection this week that the annual deficit will reach a historic $1.5 trillion this year. This was the latest report to raise concerns about how massive government debts in developed countries could undermine the global economic recovery.”
I actually saw this a couple of days ago, but did not blog on it at the time. The IMF also warned Japan that it will be in serious trouble if things do not change for the better very, very soon.
Ed Morrisey goes on to point out the false “savings” a discretionary budget freeze would produce. There simply are no savings in a freeze – just continued spending and more deficits.
If the IMF is worried, you should be, too. I am.