IMF Says US Must Raise All Taxes, Cut All Entitlements By 35% To Contain Future Budget

Tyler Durden's picture

In what is either a delayed April Fool's report, or its latest exercise in rhetoric the IMF asks the humorous question: "An Analysis of U.S. Fiscal and Generational Imbalances: Who Will Pay and How?" The obvious answer is naturally the Fed. The unobvious answer, according to the IMF, is the impossible: a slashing all of USSA's entitlement benefits by a whopping 35% combined with a hike in all tax rates. From the IMF: "This paper updates existing measures of the U.S. fiscal gap to include federal laws up to and including the mid-December 2010 federal fiscal stimulus. It then applies the methodology of generational accounting to establish how the burden of adjustment required to attain fiscal sustainability is shared across generations. We find that the U.S. fiscal and generational imbalances are large under plausible parametric assumptions, and, while not much affected by the financial crisis, they have not improved much by the passing of the Final Healthcare Legislation. We find that, under our baseline scenario, a full elimination of the fiscal and generational imbalances would require all taxes to go up and all transfers to be cut immediately and permanently by 35 percent. A delay in the adjustment makes it more costly." Such drama: have these people really not heard of the Fed. What is rather shocking is that Larry Kotlikoff, who has made it all too clear the US is bankrupt, was used as a consultant: "We are extremely grateful to Lawrence Kotlikoff who acted as a consultant providing unique inspiration, guidance and supervision." Are massively dissenting voices now credible sources of information? What next: Fed white paper citing Zero Hedge?

Full April Fool's joke:

IMF Working Paper US

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Turd Ferguson's picture

good luck with that

unwashedmass's picture


JPM now trying to gin up attack on gold and silver.

how unexpected.

JohnG's picture

It doesn'tseem to be working this morning.  Usually a huge attack arounf 8:30, but looks like they sort of gave up when price popped back up.

People are getting it.  No silver except paper.


bankrupt JPM buy silver's picture

raise taxes, right.  Like they should raise interest rates too.  This is going to get messy.

Diogenes's picture

"Who is going to pay and how?"

The public is going to pay, and how. More taxes and less benefits for Joe Six Pack, more benefits and less taxes for the big boys. As usual.

In Fed We Trust's picture

I thought the IMF was the FED?



JR's picture

As you say, the Fed, the IMF, and the World Bank, are one. The entire plan was designed in 1944 at Bretton Woods, New Hampshire, by the world's most prominent socialists "as mechanisms for eliminating gold from world finance."  Its hidden agenda?  "The building of world socialism." 

The IMF is the protege of the Federal Reserve System.

The money manipulators are using the political frames of the Fed, the IMF and World Bank to loot the resources of the world and turn the American republic into a global empire.

That’s what globalization is all about, getting the nations addicted and dependent and then milking them for the benefit of the looters.

As John Perkins writes, they “are high paid professionals who cheat countries around the globe out of trillions of dollars.  Their tools include fraudulent financial reports, rigged elections, payoffs, extortions, sex, and murder.  They play a game as old as Empire but one that has taken on terrifying dimensions during this time of globalization.”

Perkins, writing in Confessions of an Economic Hit Man, said such economic international skullduggery has dire consequences for the future of democracy and the world…and can be seen from Mikla’s KOW Fed scenario: “Print dollars to purchase real assets and securities which establishes… [its] ’fundamental value’ as a holder of assets (MBS purchases, POMO, etc.).”

G. Edward Griffin, in Jekyll Island, explains that the IMF/World Bank "would not exist without the flow of American dollars and the benevolence of American leadership."

Says Griffin: The Fed has become an accomplice in the support of totalitarian regimes throughout the world...that is one of the reasons it should be abolished."

Ident 7777 economy's picture

by JR , on Mon, 04/04/2011 - 12:32 #1132881 

As you say, the Fed, the IMF, and the World Bank, are one.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

By charter?

Do you have a link?

Or, do you mean by association, by commonality of purpose?


JR's picture

Yes, they truly are one and the common ingredient is fiat money - Bernanke at the Fed; Strauss-Kahn at the IMF; and Zoellick at the World Bank. All three were created by global financiers and politicians with the intention of combining them into a single entity with a single world currency. The IMF/World Bank already is functioning -- in conjunction with the Fed -- as a world central bank. The world currency -- the SDR -- already has been introduced.

The Fed and the IMF have become the “lenders of last resort” for virtually the entire planet. They pretend their measures are necessary to protect the public. The result has been just the opposite – the exploitation of sovereignty and freedom to the people's detriment and the extraction of trillions of dollars of the world's value through taxes and inflation.  The world is now in the final inning of this deadly game...

Wikipedia: United Nations Monetary and Financial Conference

The United Nations Monetary and Financial Conference, commonly known as the Bretton Woods conference, was a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, to regulate the international monetary and financial order after the conclusion of World War II.[1]

The conference was held from 1-22 July 1944, when the agreements were signed to set up the International Bank for Reconstruction and Development (IBRD), the General Agreement on Tariffs and Trade (GATT), and the International Monetary Fund (IMF)...

The Bretton Woods Conference took place in July 1944, but did not become operative until 1959, when all the European currencies became convertible.

The main terms of this agreement were:

  1. Formation of the IMF and the IBRD (presently part of the World Bank).
  2. Adjustably pegged foreign exchange market rate system: The exchange rates were fixed, with the provision of changing them if necessary.
  3. Currencies were required to be convertible for trade related and other current account transactions. The governments, however, had the power to regulate ostentatious capital flows.
  4. As it was possible that exchange rates thus established might not be favourable to a country's balance of payments position, the governments had the power to revise them by up to 10%.
  5. All member countries were required to subscribe to the IMF's capital.

The best source for this information, IMO, is G. Edward Griffin's The Creature from Jekyll Island: A Second Look at the Federal Reserve.


Ident 7777 economy's picture

First off, good response, not that I agree with any of it at this particular juncture ('blank check approval', not just yet) ...

Next, this:

- - - - - - - - - - - - - - - - - - - - -

The best source for this information, IMO, is G. Edward Griffin's The Creature from Jekyll Island: A Second Look at the Federal Reserve.

- - - - - - - - - - - - - - - - - - - - - -

I don't trust, at this juncture, anything written or produced by G. Edward Griffin after having seen a 'chemtrail' video his name is associated with, so, I'll need another cite when it comes to the creation of 'The Fed', thank you ...





JR's picture

I have yet to find or hear of one error in Griffin’s “Creature from Jeyll Island.”   This is the foremost topic of our time; it’s the core of who will be the ruler of the planet.  I am satisfied with the research that I’ve done so far that the plan for world government revolves around the Federal Reserve and its international manifestation, the IMF.  It is important for all of us to research it as much as possible.  When you find out information from your position, please let me know.

By the way, Griffin’s book has long been a best seller in Japan and now is best selling in Germany.

Beware that your doubts do not make you miss the truth, awaiting to see the nails in the hands.

Ident 7777 economy's picture

I have yet to find or hear of one error in Griffin’s “Creature from Jeyll Island.”  

- - - - - - - - - - - - - - - - - - - - - - - - -

At the bottom of this page, there are about 10 different common 'myths' spread about the Fed and the creation of the Fed (mainly by Griffin in his book it would appear):


Let's take a look at the first one:


Myth #1:

"The Federal Reserve Act of 1913 was crafted by Wall Street bankers and a few senators in a secret meeting."

A brief opening: The facts - (see link above for more)

On the Georgian resort hideaway of Jekyll Island (which has some excellent golf courses, by the way), there once met a coalition of Wall Street bankers and U.S. senators. This secret 1910 meeting had a sinister purpose, the conspiracy theorists say. The bankers wanted to establish a new central bank under the direct control of New York's financial elite. Such a plan would give the Wall Street bankers near total control of the financial system and allow them to manipulate it for their personal gain.

G. Edward Griffin lays out this conspiratorial version of history in his book The Creature from Jekyll Island. His amateurish take on history is highly suspect, however. Gerry Rough, in a series of well- researched essays on U.S. banking history, reveals many historical inaccuracies, inconsistencies, and even contradictions in Griffin's book and others of its genre.


JR's picture

The activities of PRA (Political Research Associates) are well known and their mission, more than I or Griffin’s work could ever substantiate, explains how the vast U.S. social Leviathan and the attacks on American free enterprise depend on the tyranny of the Federal Reserve

A fabricated denouement of Griffin’s work by PRA can only solidify Griffin’s stature in the eyes of the world and further testifies to the immense popularity and endurance of his learned tome these many years in its expose of the Federal Reserve System.

The PRA’s self-defined mission as “a progressive think tank presenting analyses…to help the media, advocates and educators understand and challenge the Right” is part of the ongoing attempt by the MSM and its socialist satellites to silence truth.

PRA makes no bones about its bias: ” [T]he political and Christian Right use skillful marketing that exploits the public’s desire for quick solutions and capitalizes on today’s hectic information flow. With clever slogans that oversimplify complex public policy issues, the Right routinely scapegoats others in pursuit of their agenda.”

Nor do its  Activist Resource Kits hide its agenda that is “designed especially for advocates  (and) include Defending Public Education, Defending Reproductive Rights, Defending Immigrant Rights, Defending Justice, and Defending Democracy.”

As for its Special Reports, let them speak for themselves: “PRA produces timely reports on specific right-wing movements or strategies. Past reports include Calculated Compassion, a detail of the Right’s attack on gays and lesbians through the "Ex-Gay" movement, Decades of Distortion, an account of the Right’s strategy to scapegoat welfare recipients, and The Pioneer Institute: Privatizing the Common Wealth, a profile of a state-level conservative think tank.”

A man can be defined by his enemies, as well as his friends.

Ident 7777 economy's picture

The activities of PRA (Political Research Associates) are well known ..
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

No - no, let's address what Flaherty and Rough wrote on the myths spun by G. Edward Griffin, or nothing at all ...


Otherwise, I could equally say 'the activities of Griffin are well known'.

But, maybe his background is not that well known? Maybe we should get some idea of his education and 'analytical' ability ... Dr. Flaherty certainly has his ...

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Per Wiki:

G. Edward Griffin (born November 7, 1931) is an American film producer, author, and political lecturer. Starting as a child actor, he became a radio station manager before age 20.

He then began a career of producing documentaries and books on often-debated topics like cancer, Noah's ark, and the Federal Reserve System, as well as on Libertarian views of the U.S. Supreme Court, terrorism, subversion, and foreign policy.

Since the 1970s, Griffin has promoted laetrile as a cancer treatment, a view considered quackery by the medical community. He has also promoted the Durup?nar site as hosting the original Noah's ark, against skeptics as well as near-Ararat Creationists.

He has opposed the Federal Reserve since the 1960s, saying it constitutes a banking cartel and an instrument of war and totalitarianism. In 2002, Griffin founded the individualist network Freedom Force International.

As of late, he has taken up the controversial issue of "chemtrails", and  championing the cause of the 9-11 'truthers'.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - -


So, I don't see academic credentials by which G. Edward Griffin could be expected to perform adequate evaluation and analysis of the current Federal Reserve system or its roots, its beginnings

Does G. Edward Griffin, in fact, have some education in his background that Wiki is not apprised of? Does he have some 'time-in-type' (as pilots say) that would qualify him to speak and write authoritatively on the subject-issues he addresses?



pointer's picture

Tone down your ego - you're one of those people who don't know how to connect dots - you have to see it typed out on a page from another source before you get it.  So what - Griffin and chemtrails - you don't know if they're real and neither do I - they could be.  Think for yourself is all I'm saying and don't walk around like your shit doesn't stink and you know what's true and what's not.  I would almost classify you as a "Troll" - go look that up, jackass.

Ident 7777 economy's picture

"Negative Ghost Rider the pattern is full ..." (hang onto your coffee)


Real-life tower fly-by by a madman:


Creed's picture

Is the water getting hotter in the pot I'm in or is that my imagination?


So this is the future, as an American citizen I can expect my elected leadership & the Supreme Court to allow unelected globalist organizations like the UN & IMF to take money out of my kids college education or my retirement savings, small as they are?

This is what the half of America that voted for Obama was really voting for, they were voting the USA out of existence.

JR's picture

This is exactly where we’re headed if it isn’t stopped.  The good news is that when we begin to see the fangs of the monster, it’s because he’s being cornered in the blind canyon.  Government waste is pushing state and federal budgets into the stratosphere, the Fed’s printing press is running 24 hours, U.S. puppets around the world are either falling or taking flak and the central banks’ hope for a world government, the IMF and a single currency is on the rocks of German elections, Irish and Greek miseries, and a Third World population over running Western middle classes.

When every Monday brings new announcements of economic tyranny, these are the signs of a central bank beginning to fire indiscriminately into the world financial system.  It reminds one of a toppling dictator and his thugs and snipers firing live bullets into the ranks of the demonstrators.  

American Dissident's picture

Indeed, I say the Iceland Option is a nice alternative -  Hell atleast try CUTTING GOVERNMENT and defunding the traitors at the Keynesian Socialist Feds little sisters. The UN, IMF and World Bank.

Mr. Anonymous's picture

It's not United Socialist States of America (USSA), Tyler, it's the UFSA, or United Fascist States of America. 


A man of your learning should know better than to confuse the two.

Seymour Butt's picture

I guess he means Socialism for the Banksters, sucker taxpayer forever footing their bill. 

And you're right, it's Fascism for the rest of us. One thing is for sure: It's not Capitalism. 

The game is totally rigged.

TruthInSunshine's picture

Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows that the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
That's how it goes
Everybody knows

Everybody knows that the boat is leaking
Everybody knows that the captain lied
Everybody got this broken feeling
Like their father or their dog just died

Everybody talking to their pockets
Everybody wants a box of chocolates
And a long stem rose
Everybody knows

Everybody knows that you love me baby
Everybody knows that you really do
Everybody knows that you've been faithful
Ah give or take a night or two
Everybody knows you've been discreet
But there were so many people you just had to meet
Without your clothes
And everybody knows

Everybody knows, everybody knows
That's how it goes
Everybody knows

Everybody knows, everybody knows
That's how it goes
Everybody knows

And everybody knows that it's now or never
Everybody knows that it's me or you
And everybody knows that you live forever
Ah when you've done a line or two
Everybody knows the deal is rotten
Old Black Joe's still pickin' cotton
For your ribbons and bows
And everybody knows

And everybody knows that the Plague is coming
Everybody knows that it's moving fast
Everybody knows that the naked man and woman
Are just a shining artifact of the past
Everybody knows the scene is dead
But there's gonna be a meter on your bed
That will disclose
What everybody knows

And everybody knows that you're in trouble
Everybody knows what you've been through
From the bloody cross on top of Calvary
To the beach of Malibu
Everybody knows it's coming apart
Take one last look at this Sacred Heart
Before it blows
And everybody knows

Holodomor2012's picture

The reason fascism has such a bad name is because the 'globalists' of both shades (red/blue) use it as a pejorative.  Most are awakened enough to recognize the buffet of lies presented us by the so-called MSM, yet still accept the larger dishes as truth.

Mr. Anonymous's picture

LOL.  'The True Adolf Hitler'.

Yeah, it's too bad we don't see more of Hitler's warm and sunny side, more images of him with dogs and kids and butterflies and ladybugs.  Far too much attention is paid to that Hitler of Total War and death camps and firebombing England and that Final Solution stuff.


Indeed, Fascism is such a warm, fuzzy and misunderstood ruling system.



Holodomor2012's picture

Some facts for you, although we are getting off topic.


1. Hitler did not start the war and he tried to do everything to avoid it.

2. War crimes of the Allies were far worse.  Dresden, Hiroshima, Nagasaki, Katyn forest, the raping of Berlin. 

3. The final solution was not 'the death of all Jews'.  There were about 150,000 Jews who fought for Germany and thousands more living in Berlin at the wars end. 

4. There were no gas chambers.  (But if you believe there were, then do you also believe Saddam had WMD's? Do you believe the old official Gulf of Tonkin story? Do you believe there are actually legitimate rebels in Libya? Do you believe in Santa Claus?

A Man without Qualities's picture

He's either a troll or an idiot, so he's come to the wrong place...

Bicycle Repairman's picture

Is Hitler a sinner?  Is Hitler a saint?

How about this?  Who cares?  It has nothing to do with what is going on now in front of your face.

Holodomor2012's picture

This is where you are wrong.  The situation today is tied tightly with Weimar.  Hitler tried to save Germany and much of Europe from the same banking dynasties that have destroyed the worlds money.


Everything is connected. 


Are you going to call me a jihadist or something because I also respect Khomeini and Ahmadinejad?

Bicycle Repairman's picture

Invoking Hitler only leads to emotional reactions.  If you must cite analogies from the past, pick one that doesn't cloud the issues.  In general let's avoid personalities and stick to the issues.

equity_momo's picture

Well the issues seem to be that any World leader or any head of state of a significant country of means , through any age/period in history ,  is a war-mongering sociopath. If they arent , they cant lead for long. Stick around long enough and you'll see for yourself how History repeats. Think the US Govn wont put people in concentration camps or when push comes to shove just liquidate en masse? 

Having school textbooks brainwash , divide and conquer is the first building block to serfdom. If you want to discuss the issues you have to be prepared to learn to quell your "emotional reactions"

We have been fully indoctrinated with a very manipulated version of history. The guilt tripping was especially brutal after WW2. It paved the way for Political Correctness.

Certain words are just trigger words for an emotional response that prevents and crowds out any serious and ultimately beneficial debate. Just what "they" wanted.


NidStyles's picture

He was trying to save Germany, but openly slaughtered many of the tribe's people that were called Gypsy's, Frank's, Briton's, and so on. Being of Hessian descent myself, I find the lack of knowledge about Germany really is quite ridiculous. Germany wasn't just a Nation-state in central Europe. It was a whole collection of tribes that covered the entire continent of Europe.


If anything Hitler was a fool for taking the money from the international banksters of the era, and then attacking his own people, because they live in another Nation-state. Germany may be the name of one of the countries now, but the Germanic people are all over the place in Europe.

FreedomGuy's picture

I knew there were few of these guys on the edge...but, wow! Mussolini and Franco were both decent guys, too. The fact that Mussolin died upside down beaten with sticks was an malinformed reaction to a misunderstanding by his own people. Krupps kind of liked fascism, too. They helped Hitler try to find peace at all costs by rearming deutschland...and racing across Poland to try and stop the Soviets on the other side. Bully for them!

Creed's picture

great, another Nazi lover


hey fuck you man



by Holodomor2012
on Mon, 04/04/2011 - 11:53


Some facts for you, although we are getting off topic.


1. Hitler did not start the war and he tried to do everything to avoid it.

2. War crimes of the Allies were far worse.  Dresden, Hiroshima, Nagasaki, Katyn forest, the raping of Berlin. 

3. The final solution was not 'the death of all Jews'.  There were about 150,000 Jews who fought for Germany and thousands more living in Berlin at the wars end. 

4. There were no gas chambers.  (But if you believe there were, then do you also believe Saddam had WMD's? Do you believe the old official Gulf of Tonkin story? Do you believe there are actually legitimate rebels in Libya? Do you believe in Santa Claus?

SheepDog-One's picture

Holodomor review Project Paperclip please. You couldnt be more wrong.

Gimp's picture

Did you miss K - 12 completely ??

Holodomor2012's picture

K-12 is about as reliable as Fox News.  They use the same writers.

FreedomGuy's picture

Not exactly. K-12 will give you the collectivist slant through the government controlled schools and unionized teachers...who will take you on field trips to your capital...where you can help them protest!

Fox tilts the other way in their opinion shows.

reader2010's picture

Hitler was the tool chosen and financed by the Party of Six in the hope that he could bring a demise of both Soviet Union and Nazi Germany. 

Holodomor2012's picture

I believed that for alittle while, but now I don't.  He was too full of love for his people.  He may have been 'played' at some point, but he was an honest and great man.

reader2010's picture

His weakness was that he firmed believed the Party of Six would let him go free when he brought the war to Soviet Union. What he could have easily finished remaining British/French armies at the beach of Dunkirk. But insanely he ordered his troops not to finish them off. 

Creed's picture

BULLSHIT to your "special knowledge' Holo


FASCISM is a dirty word because it combines the 2 main sources of secular power in this world against everyone else


that's corporations & governments

they have the MONEY and the GUNS and it's used against EVERYONE ELSE to the benefit of themselves

Duuude's picture

"...United Farcist States of Americe."


There, fixed it fer ya.

SheepDog-One's picture

Im not even going to justify the present sorry state of this country with some technical textbook definition, Farcist Fiatsco far as Im concerned a complete F'n joke!

tired1's picture

Nah, I used to wonder why talkings heads use the term 'former USSR', now it's clear why the distinction is necessary.

FreedomGuy's picture

I'm just happy to see someone else use "USSA". The "socialism" part is the most important. For the record, I divde the many forms of socialism into two groups. Group 1 is the democratic type where we have some say in things and we vote how much we are going to steal from each other and not pay for. Group II are the autocratic types, mainly fascist and Soviet. Group I are the childlike socialists with utopian ideals that are never reached. They pave the way for group II. Group II members are the adult socialists who know its all really just about power and control. They use the group I types initially but at some point as they get close to complete power they "push" things over the edge and take power. These are the grown ups behind the scenes.

I wonder how many failures it will take until the world or at least rational civilized country reject the idea of the collective? My guess is it'll take a few more get back to 1776.

Hunch Trader's picture

+1 and that next time, they'd be smart enough to keep the true results of 1776.


Commander Cody's picture

Agreed, the USA is now a fascist corporatist government dealing socialism for the rich and the poor, while promising to keep the middle class solvent through "insurance", i.e., Social Security and Medicare, and now Obamacare.  The solutions to the deficit never mentioned are reductions to Welfare, food stamps, abortions and the like.  Social Security and Medicare are the first on the table for dissecting.

If handouts to business were eliminated and taxes spread fairly amongst individuals and business, then much of the deficit would be pared.  This is never on the table thanks to the fascists.  We're screwed.