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IMF backs coalition spending cuts Watch

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    The International Monetary Fund (IMF) has said the UK economy is "on the mend" and has backed the coalition government's plans to cut spending.
    The IMF described the deficit reduction plan as "essential" in supporting the UK's debt position, and said it "supported a balanced recovery".
    The body also said that the UK economy would continue to recover at a moderate pace while the cuts were implemented.
    The IMF predicted growth of 2% in 2011, rising to 2.5% in the medium term.
    That marks a small revision downwards from an earlier forecast of 2.1% growth in 2011.
    "Economic recovery is underway, unemployment has stabilised and financial sector health has improved," the IMF said.
    http://www.bbc.co.uk/news/business-11419937
    So, even the IMF now believes that deficit reduction is vital and our governments response is the correct one. What do you think?
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    Generally speaking, if the IMF says something, the converse is usually true.
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    I'm just going to wait and see personally. How the economy goes over the next few years will make or break the Tories.
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    The IMF jerk off to low government spending figures, not surprised they've backed this.
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    International Murdoch Front
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    The deficit had to be cut. Anybody who says otherwise is either retarded or spaced out.

    The issue in my mind is the extent of the cuts, and I think the Tories/Lib Dems went too far. If the deficit in 2015 is about 4% of GDP, I think that's good enough IMO.
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    (Original post by rajandkwameali)
    The deficit had to be cut. Anybody who says otherwise is either retarded or spaced out.

    The issue in my mind is the extent of the cuts, and I think the Tories/Lib Dems went too far. If the deficit in 2015 is about 4% of GDP, I think that's good enough IMO.
    That's faster than labour.
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    Why are we surprised at this? Like the WTO and the WB (World Bank) the IMF is a key player in the New World Order.
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    Exactly. Can anyone think of a single respected financial institution which supports the Labour plan?
    (real question)


    The Conservatives could find the meaning of life itself and the moronic Labourites would still oppose it.
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    (Original post by loafer)
    Exactly. Can anyone think of a single respected financial institution which supports the Labour plan?
    (real question)


    The Conservatives could find the meaning of life itself and the moronic Labourites would still oppose it.
    This especially on this site.
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    (Original post by Ed Millipede)
    International Murdoch Front
    Huh?
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    Political Ambassador
    (Original post by Ed Millipede)
    International Murdoch Front
    Huh?
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    (Original post by Aj12)
    This especially on this site.
    I laughed when I read that Red Ed was going to criticise Labour's 'we have ended boom and bust' record - because the looney lefties here have just spent six months defending exactly what their party have just disowned.
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    Be interesting to see Milibands reply to this, one thing for sure, Ed Balls will not be shadow Chancellor.
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    (Original post by loafer)
    I laughed when I read that Red Ed was going to criticise Labour's 'we have ended boom and bust' record - because the looney lefties here have just spent six months defending exactly what their party have just disowned.
    Is Ed more left then Foot you think?
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    The IMF is wrong to endorse the cuts because the cuts don't go anywhere near far enough.

    Basically the IMF has endorsed a plan that isn't going to work. A lot of top economists agree with this. The cuts are a nice gesture, but they are just that a simple gesture.
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    (Original post by invictus_veritas)
    The IMF is wrong to endorse the cuts because the cuts don't go anywhere near far enough.

    Basically the IMF has endorsed a plan that isn't going to work. A lot of top economists agree with this. The cuts are a nice gesture, but they are just that a simple gesture.
    How would top economists know whats in the CSR?
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    (Original post by Teaddict)
    The International Monetary Fund (IMF) has said the UK economy is "on the mend" and has backed the coalition government's plans to cut spending.
    The IMF described the deficit reduction plan as "essential" in supporting the UK's debt position, and said it "supported a balanced recovery".
    The body also said that the UK economy would continue to recover at a moderate pace while the cuts were implemented.
    The IMF predicted growth of 2% in 2011, rising to 2.5% in the medium term.
    That marks a small revision downwards from an earlier forecast of 2.1% growth in 2011.
    "Economic recovery is underway, unemployment has stabilised and financial sector health has improved," the IMF said.
    http://www.bbc.co.uk/news/business-11419937
    So, even the IMF now believes that deficit reduction is vital and our governments response is the correct one. What do you think?
    I think that the institutions of capitalism - like the IMF - will support state actions which help rescue the capitalist system not by punishing bankers and financiers but by cutting public services.
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    (Original post by Quady)
    How would top economists know whats in the CSR?
    Look into intragenerational debt if you're interested in why we're not going far enough. Basically by some new measures, which have been endorsed by some top economics schools and top economists, British debt is actually 505% of GDP and America is in a worse financial state than Greece.
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    (Original post by Oswy)
    I think that the institutions of capitalism - like the IMF - will support state actions which help rescue the capitalist system not by punishing bankers and financiers but by cutting public services.
    The problem is that we're actually in the midst of an ongoing economic crisis in which the global financial crisis was one, relatively minor part.

    The major problem is that government spending is out of control.

    It's not that I'm advocating small government here. I'm not. The problem is that taxes in the USA would have to rise by 60% in order to run a balanced budget. This is according to John Taylor who is a leading Stanford Economist and will probably win a nobel prize at some point.

    Seeing as a 60% rise in taxes is deemed completely unrealistic by most economists and even if it wasn't, it is by the vast majority of the public, the only prudent course of action is to cut spending significantly.

    Alan Greenspan, who is one of the most conservative economists around recently said that the choice we face is between terrible and catastrophic and advocated letting all tax cuts - not just the Bush tax cuts expire - and then cutting spending significantly.

    The IMF for once isn't advocating spending cuts as part of some dark, decadent capitalist ideology with little academic grounding like shock therapy appeared to be. It's advocating spending cuts because government spending has gotten so out of control that if left unchecked it will without any doubt destabilise the entire global economy and probably lead to America, Britain and much of the EU resembling third world countries.

    The situation is dire: one trillion dollars (around 1/14 of the US economy) is added to US debt every year alone at current rates. The interest alone on the current debt is phenomenal and the same can be said of Britain, Greece and many other European countries.

    Up against all of this the global financial crisis was a tiny, relatively insignificant event.
 
 
 
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