Global Financial Agency: US Economy Facing Calamity, Politicians In Denial

It’s rare for an international organization to speak bluntly about a single nation’s policies. But that’s what the International Monetary Fund (IMF) did in its most recent report on the global economy.

Regarding the U.S. economy, the IMF said:

The strong recent performance of the United States reflects robust productivity and employment growth, but also strong demand in an economy that remains overheated. This calls for a cautious and gradual approach to easing by the Federal Reserve. The fiscal stance, out of line with long-term fiscal sustainability, is of particular concern. It raises short-term risks to the disinflation process, as well as longer-term fiscal and financial stability risks for the global economy. Something will have to give. [emphasis added]

That should be obvious to our political class and the voters who install them in office. But one would be hard-pressed to find signs of genuine, hard-nosed fiscal restraint on Uncle Sam’s policy menu.  Instead, we have this:

Congress voted last spring to suspend the debt limit as part of a larger bipartisan deal aimed at reining in annual government funding with budget caps. At the time, the national debt stood at roughly $31.4 trillion, and has since risen by trillions more dollars in the past year, according to the Treasury Department.

In its long-term budget outlook report released earlier this year, the Congressional Budget Office estimated the national deficit would rise “significantly in relation to " href="https://americanliberty.news/glossary/gross-domestic-product-gdp/" data-mobile-support="0" data-gt-translate-attributes='[{"attribute":"data-cmtooltip", "format":"html"}]' tabindex="0" role="link">gross domestic product (GDP) over the next 30 years, reaching 8.5 percent of GDP in 2054.”

Since that puppet dance masquerading as fiscal restraint in the spring, the debt has risen to more than $34 trillion.

One can only wonder if it will reach an unfathomable $40 trillion by Election Day, when the major parties hope and pray you will vote for one of their aged, populist spendthrifts….and pay no attention to the red ink.

Something will give. And when that something gives, it won’t be orderly or painless. But it will be, and is, entirely predictable.

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

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Norman Leahy

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Norman Leahy has written about national and Virginia politics for more than 30 years with outlets ranging from The Washington Post to BearingDrift.com. A consulting writer, editor, recovering think tank executive and campaign operative, Norman lives in Virginia.

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