Anonymous
Anonymous asked in Politics & GovernmentPolitics · 9 years ago

Fellow Americans: how many of you know that the IMF has declared the US bankrupt, & our debt is $13 trillion?

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  • Anonymous
    9 years ago
    Best Answer

    FYI to everyone - Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy:“Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”

    http://www.imf.org/external/np/sec/pn/2010/pn10101...

    But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says:“The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

    http://www.imf.org/external/pubs/ft/scr/2010/cr102...

    To put 14 percent of gross domestic product in perspective, current federal revenue totals 14.9 percent of GDP. So the IMF is saying that closing the U.S. fiscal gap, from the revenue side, requires, roughly speaking, an immediate and permanent doubling of our personal-income, corporate and federal taxes as well as the payroll levy set down in the Federal Insurance Contribution Act.

    In other words, the US in not bankrupt, but insolvent which is worse. Bankruptcies can be solved, insolvencies mean the system isn't working and no one wants to bail out an insolvent operation.

  • 9 years ago

    Doesn't surprise me.

    Babyspit - "Obama's policies have added very little to the debt" .... how stupid do you think we are? Or how stupid are you? Obama holds the top two record deficit years back to back (2009 & 2010). Since being in office (about 21 months) his policies have added an ADDITIONAL 2+ Trillion to the debt. That's on pace the nearly TRIPLE what Bush 43 has added during his presidency, who by the way was the previous record holder for the largest deficit year.

  • Anonymous
    9 years ago

    I do buuuuuut! As Ron Paul is quick to point out that debt is owed almost entirely to the federal reserve and we don't have to pay it.

  • Anonymous
    9 years ago

    Didn't hear the former.

    I know about the latter - such as where the debt came from (reagan, bush, bush).

    Obama's policies have added very little to the debt, opposite of the right's constant lying.

    For the stupid cons on this page that continue to repeat lies about the deficit, this comes from the conservative cato institute (I know you guys don't like economists, so I won't link a non-partisan site).

    http://cato.org/pub_display.php?pub_id=11094

    Trying reading, cons.

    Fox lies to you DAILY.

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  • 9 years ago

    I didn't hear the former either.

    But I also don't think you can blame Reagan-Bush-Bush, either. He pledged more money in the next 10 years than all 3 combined.

    Good try, though.

  • Anonymous
    9 years ago

    I believe it and thank the FED and our corrupt government!

  • 9 years ago

    Obama did!

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