IMF says US debt creating “significant risks” for the global economy
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The International Monetary Fund (IMF) has warned that the rising US debt is creating "significant risks" for the global economy. Reports delivered at the IMF's annual spring meeting indicate that a major crisis is building up in the global economy and financial system. The crisis is centered in the United States, with the IMF's chief economist expressing particular concern about the fiscal position of the US. The IMF report also highlighted the worsening debt situation in other major economies, including Italy, the UK, and China. The report emphasized the need for policy action to address fundamental imbalances between spending and revenues. It also warned that delaying efforts to strengthen public finances could limit fiscal space to deal with future crises. The IMF analysis also highlighted the growth of private credit as a source of finance for corporations and finance houses, with the sector estimated to be worth $2 trillion. The IMF warned that vulnerabilities in this sector could generate large, unexpected losses in a downturn, posing risks to financial stability. The IMF's reports indicate that the global capitalist system is heading into a systemic crisis and breakdown, and the ruling classes will respond with an onslaught against the working class. The IMF's response is to call for an all-out assault on the social position of workers and their families, emphasizing the need for a revolutionary program aimed at the conquest of political power and the establishment of a socialist economy.

#Imf #UsDebt #GlobalEconomy #FinancialCrisis #FiscalDeficit

https://www.wsws.org/en/articles/2024/04/18/mgtq-a18.html