FT.com / US / Politics & Foreign policy - US lacks credibility on debt, says IMF
Perhaps the IMF can say what would be terribly unpopular and thought to be just more right wing paranoia if I said it…
ft.com
US lacks credibility on debt, says IMF
By Chris Giles and James Politi in Washington
Published: April 12 2011 19:15 | Last updated: April 12 2011 19:15
The US lacks a “credible strategy” to stabilise its mounting public debt posing a small but significant risk of a new global economic crisis, says the International Monetary Fund.
In an unusually stern rebuke to its largest shareholder, the IMF said the US was the only advanced economy to be increasing its underlying budget deficit in 2011 at a time when its economy was growing fast enough to reduce borrowing.
The latest warning on the deficit was delivered as Barack Obama, the US president, is becoming increasingly engaged in the debate over ways to curb America’s mounting debt.