June 29, 2011
The June 20th report of the International Monetary Fund (IMF) to the United States strongly recommended that the debt ceiling be raised because “if the debt ceiling is not raised soon…[it] would have significant global repercussions, given the central role of U. S. Treasury bonds in world markets. ” In announcing the report, John Lipsky (picture, left), acting managing director for the IMF, said:
We’re confident that the participants are well aware of the potential risks of a debt default in the U. S. and will avoid those dangers. It should be self-evident [that] a debt default by the U. S. government debt market would have very serious, far-reaching, dramatic repercussions and that’s why we’re confident that it will be avoided.
1. Don’t cut spending too much — it might impede the economic recovery
2. Keep interest rates low for a long time
3. Keep an eye on inflation
4. Keep stimulating the housing market, it’ll eventually come back
5. Enforce “cramdowns” by banks holding mortgages in order to clear the market more quickly
6. Fully implement the Dodd-Frank financial reforms, with full funding to complete the bill’s potential to regulate further the financial markets
7. Allocate more money for federal job training.
8. Consolidate the government’s present 50 different job programs into a single program
9. Institute a national sales tax, or value-added-tax (VAT)
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| Written by Bob Adelmann |
| Wednesday, 29 June 2011 17:33 |
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