The World's Financial Crisis Continues

I.M.F. Warns Wealthy Nations On Debt -- New York Times

BEIJING — The global economic crisis has left “deep scars” in the fiscal balances of the world’s advanced economies, which should begin to rein in spending next year as the recovery continues, the No.2 official at the International Monetary Fund said Sunday in Beijing.

In a speech at the China Development Forum in Beijing, the I.M.F. official, John Lipsky, who is the deputy managing director, offered a grim prognosis for the world’s wealthiest countries, which are at a level of indebtedness not seen since the aftermath of World War II.

For the United States, “a higher public savings rate will be required to ensure long-term fiscal sustainability,” Mr. Lipsky said.

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More News On IMF Warnings About Debt

IMF warns wealthiest nations about their debt -- Forbes/AP
IMF official: Top economies must cut debt -- UPI
IMF Paints Grim Picture of Fiscal Tightening Needs -- ABC News
Lipsky Says Debt Challenges Face Advanced Economies -- Business Week/Bloomberg
IMF warns wealthiest nations about their debt -- Business Week/AP

My Comment: Everyone knows that we are spending money above our means .... but no one in government is prepared to do anything about it ... in fact, their intent is to expand it.