The International Monetary Fund urged the United States on Friday to repeal sweeping government spending cuts and recommended that the Federal Reserve continue a bond-buying program through at least the end of the year.
In its annual check of the health of the U.S. economy, the IMF forecast economic growth would be a sluggish 1.9 percent this year. The IMF estimates growth would be as much as 1.75 percentage points higher if not for a rush to cut the government's budget deficit.
The IMF cut its outlook for economic growth in 2014 to 2.7 percent, below its 3 percent forecast published in April. The Fund said in April it still assumed the deep government spending cuts would be repealed, but it had now dropped that assumption.
Before you get all excited:
The IMF said the United States should reverse the spending cuts and instead adopt a plan to slow the growth in spending on government-funded health care and pensions, known as "entitlements." The Fund would also like the United States to collect more in taxes....
"Now our advice is not just to slow down (budget cuts)," IMF Managing Director Christine Lagarde said at a news conference. "Our advice is also to hurry up: hurry up with putting in place a medium-term road map to restore long-run fiscal sustainability."Just as neoliberal as ever.
Reuters
Anna Yukhananov
The IMF said the United States should reverse the spending cuts and instead adopt a plan to slow the growth in spending on government-funded health care and pensions, known as "entitlements." Reuters
ReplyDeleteMaybe the banks are realizing where the interest for the loans they drive people into debt comes from?
"Maybe the banks are realizing where the interest for the loans they drive people into debt comes from?"
ReplyDeleteApparently not, since they are advocating cuts in the sources of funds that pay that interest.
Basically this report is jonesing for more pain for the working man...undermining their own goals simultaneously.
There has to be something we're missing here...