Tuesday, April 12, 2011

Stuck on Stupid : US lacks credibility on debt, says IMF

US lacks credibility on debt, says IMF

By Chris Giles and James Politi in Washington
Published: April 12 2011 19:15 | Last updated: April 12 2011 19:15

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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