US Lacks Credibility On Debt, Says IMF -- Financial Times
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.
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Update: US deficit up 15.7% in first half of fiscal 2011 -- Yahoo News/AFP
My Comment: The IMF is right .... the US Has no credibility in controlling its debt, especially since everyone now realizes that the US government has no interest to curtail its addiction to spending. My prediction of what will be happening in the next few weeks .... a call to raise taxes and some proposals to limit the growth of spending in Defense .... and that is about it.