IMF warns U.S. headed toward financial crisis if debt is not urgently reduced

Wednesday, June 22, 2011 by: J. D. Heyes
Tags: financial crisis, IMF, health news

eTrust Pro Certified

Most Viewed Articles
Popular on Facebook
BACK INTO THE CLOSET: Why U.S. reporters are not allowed to write about rainbow events in nations where being gay is still condemned
Depopulation test run? 75% of children who received vaccines in Mexican town now dead or hospitalized
A family destroyed: Six-month-old dies after clinic injects baby with 13 vaccines at once without mother's informed consent
INVESTIGATION: Three days before Dr. Bradstreet was found dead in a river, U.S. govt. agents raided his research facility to seize a breakthrough cancer treatment called GcMAF
BAM! Chipotle goes 100% non-GMO; flatly rejecting the biotech industry and its toxic food ingredients
BOMBSHELL: China and America already at war: Tianjin explosion carried out by Pentagon space weapon in retaliation for Yuan currency devaluation... Military helicopters now patrolling Beijing
ECONOMIC SLAVERY FOR ALL: While we were distracted with the Confederate flag flap, Congress quietly forfeited our entire economic future via fast-track trade authority
March Against Monsanto explodes globally... World citizens stage massive protests across 38 countries, 428 cities... mainstream media pretends it never happened
GMO crops totally banned in Russia... powerful nation blocks Monsanto's agricultural imperialism and mass poisoning of the population
SCOTUS same-sex marriage decision may have just legalized the concealed carry of loaded firearms across all 50 states, nullifying gun laws everywhere
Nearly every mass shooting in the last 20 years shares one surprising thing? and it's not guns
Vicious attack on Dr. Oz actually waged by biotech mafia; plot to destroy Oz launched after episode on glyphosate toxicity went viral
Holistic cancer treatment pioneer Dr. Nicholas Gonzalez dies suddenly; patients mourn the loss of a compassionate, innovative doctor who helped thousands heal from cancer
Pepsi drops aspartame from diet soda as consumers reject toxic sweetener
Bride of Frankenfood: Hillary Clinton pushes GMO agenda... hires Monsanto lobbyist... takes huge dollars from Monsanto
Wild eyes and bowl cuts: Why do mass shooters always share the same hair styles and crazed zombie stares?
Mind control through emotional domination: How we're all being manipulated by the "crisis of the NOW"
Genetically white woman now claims self-identify as black: If you can choose your gender, can you also choose your race? What about your species? Can a human claim to be a llama?
(NaturalNews) In what should be another klaxon bell warning in the night for lawmakers and the Obama administration, the International Monetary Fund last week warned once again that unless U.S. debt is brought under control, the nation's financial ship of state is headed for an iceburg, and when it sinks, the entire global economy won't be far behind.

In a new assessment of American and European debt balance sheets, the IMF said both were "playing with fire" if they failed to get the fiscal houses in order.

It seems that not only is government spending out of control, the U.S. economy isn't growing very quickly either. Both are combining to put the squeeze on American financial health in a way that will eventually lead to an economic collapse of epic proportions.

The IMF predicts that U.S. gross domestic product - the measure of the entire economic output of the country - will grow at a lukewarm 2.5 percent this year, and just 2.7 percent next year.

Just to put that into perspective, GDP growth was a pathetic 1.8 percent in the first quarter of 2011, down from 3.1 percent in the fourth quarter of last year and 2.6 percent in all of 2010.

Meanwhile, unemployment was at or near 10 percent during most of 2010; it remains 9.1 percent today. When factories, businesses and firms don't grow, they don't hire. When both of these factors combine, the result is less tax revenue for the government, but that hasn't seemed to matter, judging by the spending spree lawmakers have been on for years - hence our nation's $14.2 trillion-plus deficit, which is growing by the second.

All of this has combined to threaten the very fiscal health of our nation, in a way that won't be easily regained and, if the bottom falls out, will be catastrophic on the world's economy as well.

What's more, there appears to be no sign in Washington that both sides of the political aisle are willing to come together to get spending in check, as well as doing what it takes to get the nation working again - a situation in which the IMF is well aware.

"You cannot afford to have a world economy where these important decisions are postponed, because you're really playing with fire," Jose Vinals, director of the IMF's monetary and capital markets department, said. "We have now entered very clearly into a new phase of the (global) crisis, which is, I would say, the political phase of the crisis."

Even a technical default on the nation's debt payments would jeopardize the country's AAA rating, say ratings agencies.

It all amounts to this: Without a serious effort to solve the nation's spending-to-debt ratio and get ourselves back on a path of fiscal sanity, there will come a time when it won't matter anymore, because the entire system will collapse. The IMF, the world's credit rating agencies, and most economists see the train coming. But what they also see is that no one who can fix the problem seems interested in getting off the track.

Follow real-time breaking news headlines on
Financial crisis at
Join over four million monthly readers. Your privacy is protected. Unsubscribe at any time.
comments powered by Disqus
Take Action: Support by linking back to this article from your website

Permalink to this article:

Embed article link: (copy HTML code below):

Reprinting this article:
Non-commercial use OK, cite with clickable link.

Follow Natural News on Facebook, Twitter, Google Plus, and Pinterest

Colloidal Silver

Advertise with NaturalNews...

Support NaturalNews Sponsors:

Advertise with NaturalNews...


Sign up for the FREE Natural News Email Newsletter

Receive breaking news on GMOs, vaccines, fluoride, radiation protection, natural cures, food safety alerts and interviews with the world's top experts on natural health and more.

Join over 7 million monthly readers of, the internet's No. 1 natural health news site. (Source:

Your email address *

Please enter the code you see above*

No Thanks

Already have it and love it!

Natural News supports and helps fund these organizations:

* Required. Once you click submit, we will send you an email asking you to confirm your free registration. Your privacy is assured and your information is kept confidential. You may unsubscribe at anytime.