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IMF Sees 2011 US Budget Deficit Of GDP At Highest 10.8% Of Developed Countries, Same As 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.
Some more from Bloomberg:
The U.S. is set to have the largest budget deficit of major developed economies this year and should narrow it now rather than face tough adjustments in the next two years, the International Monetary Fund said.
The U.S. shortfall will reach 10.8 percent of its gross domestic product this year, ahead of Japan and the U.K., the Washington-based IMF said in a report released today. It estimates that President Barack Obama will need to cut the deficit by 5 percentage points of GDP in the next two fiscal years, the largest adjustment in “at least half a century,” to meet his pledge of halving it by the end of his four-year term.
“Market concerns about sustainability remain subdued in the U.S., but a further delay of action could be fiscally costly, with deficit increases exacerbated by rising yields,” the IMF wrote in its Fiscal Monitor report, published several times a year to analyze public finance development.
The IMF recommended “a down payment” in the form of deficit reduction this year that would make the government goal “compatible with a less abrupt withdrawal of stimulus later.”
Obama is expected to announce long-term proposals for cutting the federal deficit tomorrow, following a budget deal he reached with congressional leaders last week that averted a government shutdown. In May, the government may be forced to increase the $14.3 trillion federal debt ceiling to ensure the U.S. will meet its financial obligations.
From the report:
Full report:
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IMFecked
Note To IMF: GET OUT !!!
http://ebookcashstreams.com/HotNewsBlog/wp-content/uploads/2011/02/imf-g...
Yeah, well, me too basically; I was just going to say "we have more credibility now, because we just cleared them for their new wonderful money wasting campaign"; we bought the PR, basically. They were pretty snippy while they were whinning and waiting for their clearance to spend "feel good money".
BTFD Bitchez.
QE 4 EVAH!!!
Didn't we stop funding the U.N. when they didn't do what we want? How long before we pull the plug on IMF for telling such nasty lies about us. Really, its only 10.77% not 10.8%.
I doubt anyone in Washington is really worried.
All they have to do is to engineer a bear raid in commodities and stocks and everyone will simply flee back into bonds.
If things get really bad, they will just engineer another 2008 market crash and send the 10-year yield back down to 2.4% and send gold back to $900.
Wash, Rinse, Repeat.
so explain how creating a crash squares with your constant eulegy of not fighting the fed, given zirp and qexxxx.
btw: how did leh and bear fail if pigmen always win?
well, at least you can claim to be the world's worst trader with pride since your world view is upside down anyway.
By 'everyone' I assume you mean Geithner and Bernanke? Only ones who have been buying stocks and bonds...so go ahead make the FED flee back into bonds they already bought. Whatever, genius.
Yup. It's as simple as that. I went long before Bill Gross starts to (is forced to?) buy.
And once the dust settles, wait for the turn, and then short the shit out of Treasuries.
Fuck, that's what I'm doing.....
Fed cannot let rates rise. Rising rates kills housing and a deader housing market rekills all the banks. Fed has to get housing to at least look like it's rising otherwise bailouts of all themajor banks again and politically that's going to be a really tough sell.
So I'm convinced that the Bernenk will print like a mofo, buy every and all treasuries driving rates on gov debt down to 2% or 2.25% 10yr and I'm out before everyone and their brothers figure out paper is only good for wiping your ass.
It's dangerous but so is everything else but real assets right now and I have plenty of those too.
They also can't raise rates because that will almost instantaneously offset any budget cuts that were just agreed to!
They also can't raise rates because because then every bank, insurance company, or pension fund will be forced to write down assets, recognize losses, and require further taxpayer funded bailouts. Wait, something doesn't seem right with that...
So simple, so elegant, so true.
I want the picture with the pink fibrefill bra back, or I'm not going to read any of your posts; so there.
You're thinking with your little head now. Is that safe for a fella of your acuity?
Listen, I'm glad the IMF is starting to become realistic. But I'll be really glad when they all commit hara-kiri or stab themselves in the heart like the evil leeches they are. Fuck the IMF. Default, die off, start over, goddamnit.
Who is the IMF really? The same bunch of world banksters who got us into all this shit, just in a different hat for today with 'IMF' logo on it.
we have to spend mony to get out of bankruptcy, debt means growth.. am i thinking right?
How many divisions does this IMF have?
LOL. Napoleon on being told the Pope would be against his campaign, "how many divisions does the Pope have". yes. Same, same; they moral suasion and our money to throw around; unfortunately.
Stalin..
plane is burning and 80% of folks are sitting in seats "acting normal"
Do you expect anything different from Americans.
'Normalcy bias'
wow, IMF and FED Reserve are they same. Seems that way.America will get free vaseline. Its over folks.
Tyler...we are winning the future. Everything is fine. http://thecivillibertarian.blogspot.com/2011/04/hows-that-winning-future...
These idiotic fucks talk out of both their asses: the fed needs to continue with easy monetary policies and that fiscal stimulus is still needed in the developed countries all the while it has gotten us nowhere but currency debasement which by the way has not created this all mighty exporting boom and manufacturing renaissance. They've also stated in the past that a commodity led recovery will help create demand-- fucking bullshit too as now prices can now be seen as hinderance? I thought it was a sign that our global economy was doing so fucking great!
Stop the funding for this bullshit extension of Keynesian morons and fed-tards.
Our Nation's debt is bad? The folks at the IMF better be careful talking like this, or Congressman Pete Stark is going to throw them out the window!
http://www.youtube.com/watch?v=UjbPZAMked0
IMF = Timmmah and Ben...ignore
Check out stocks - reminds me of last May 6th. Flash crash anyone?
The problems of Fiscal debt is a illusion - private debt is real debt , fiscal stuff does not need to be debt in any shape or form.
They just add the interest rate on because the powers in charge cannot bear to see anything running around without a weight of interest.
Do you want to be debt slaves as the Irish are who not only have a trade surplus but now a current account surplus because our masters desire it.
Grow up and have some respect for yourselves - its bad enough to live on a Island of cretins.
Where is the Idea of American Independence ?
Im with you totally! How long will people just sit and take it? 'Marveling at their captors' and what their next move to screw them over is likely to be, sick of Stockholm Syndrone USA myself!
How long will they take it? How long until sheep rebel against the practice of eating mutton? Been a few thousand years and so far those sheep seem pretty ok with the system.
People will only act when they are pushed and have nothing left, so we are a long way off before any sort of uprising against the system. So long as there is still the illusion of wealth/prosperity the people will not even think of changing the overall system that abuses us. the mass man wants to be led, so it's a little hard for it to be overcome. Best we can do is care for ourselves and our loved ones as individuals.
The glass isn't completely empty. Prosperity is not an illusion, and is probably available to a larger share of the populace than at any prior time. Wealth, not so much, as it has been replaced by debt amoungst much of the masses.
The battle between the haves and have nots will always be.
But is it real prosperity or a symptom of the debt orgy? How much of our prosperity would vanish without the debt system, how many jobs would be lost?
It's not really a battle between the haves and the have nots. I don't see it as a fight. There is the herd of humanity, the shepherds of the herd, and the smart sheep who see the system. The shepherd and the herd are on the same page, they like the system. Now the sheep may bleat about being sheared or slaughtered but they lack the will to do anything about it, so they are meat by choice and consent. If there is any fight it is between the awakened part of the herd and the shepherds, the mass of the herd will never be involved in anything except providing their do to the shepherd.
Beware my fellow Americans.
The IMF will send in their stormtroopers and soon DC will look like this.
http://www.beardface.com/files/news_images/greece_riots.jpg
Remember - you are not alone - FIGHT THE IMF.
D.C. April 15'th
http://imfresistance.org/
I'd like to know who is on the other side of this indebtedness. The same creeps who are about to suggest gruesome austerity measures for the American public perhaps.
Smaller GDP means larger deficit cuts....Not going to happen though..
So am I the only one thinking "Ok IMF, I agree deficits are to big, so no more free money for you"? I mean really. This is like a spendthrift kid rifling though their parents wallet while telling the parent "You really need to get your finances in order, there is hardly anything here for me to steal".
+100 Yes; it's crazy isn't it? They need to backhanded and reminded they have right to sit down and shut up.
IMF: "The United States needs to accelerate the adoption of credible measures to reduce debt ratios...."
Translation: "The United States needs to fuck over its middle class even more with higher tax burdens and stolen pensions. . ."
Although, as has already been commented above and many times on ZH, if the Sheeple do not wake up than they deserve everything they get. I look around me in amazement at the ignorance shown by my fellow Americans. When I try to warn them they think I'm the one whose nuts. Sometimes its almost like I can't wait to be "I told you so" guy.
Might I offer a suggestion and NEVER be the "I told you so" guy? If things go the way they are likely to, I can assure you that telling people you saw it and prepared will be an excellent way to get robbed. These same people who will not listen to you know will gleefully rob you of what you were able to save. Take your joy in not losing everything in the wave of misery.
Nah - I'll be dancing my ass off in the streets in a show of arrogance that should get me killed.
If I'm going down - I'm going down in style.
The sheepeople are afraid, they will believe any 'truth' which doesn't require them to have to make tough decisions.
...the consequence of this is they will have to make all those tough decisions at once.
Trust me I agree with your reply. Its just so frustrating. If I ever am "I told you so" guy it will be when I'm in a bad mood and to a close friend or relative who is eating my food that I was smart enough to stock up on and am willing to share. Its the people you care about most that drive you crazy when they won't listen and only wish to carry on as if "there's nothing to see here keep moving along."
There is a long waiting list to be the "I told you so" guy.
I was told the other day by someone I live near - when I suggested we should start up a local community vegetable garden - "why bother, it's cheaper to buy vegetables at Wal-mart!"
...oh that guy's going to get a bang on his door with a big fat I TOLD YOU SO when he's scrabbling around for what's left on the shelves of the supermarket.
...of course this is after I kick in the doors of the Fed and with the worlds largest loudhailer bellow "I TOLD YOU SO" - right down bernanke's ear - so it makes him deaf to go along with his "dumb", "blind" and general "stupid".
I share your frustration -- Yeah why grow your own vegetables? Because its actually fun, rewarding, fascinating, and empowering to be learning a sense of self-reliance. Who would want to do that when you can play "Words with Friends" with 20 different people at one time on your iPhone.
Luckily I do have a handful of friends who understand and we quietly nod in agreement during SHTF discussions. We will combine forces and band up if we have to.
"Deficits don't matter." Dick Cheney
Trillion dollar deficits as far as the eye can see. It's nothing but stealth redistribution through deficit spending with huge surcharge taxes on everybody via inflation without their consent. The banks gotta survive somehow at everybody elses expense.
"The shabby secret of the social Welfare State is the confiscation of wealth through deficit spending..." --Alan Greenspan, 1966
Anti IMF rally (hopefully rebellion) April 15'th D.C.
http://imfresistance.org/
So what is the US debt to GDP ratio now? 90%?