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A lot of IMF “warnings” can be summarised as:
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you are not / may not be able to pay off the privatised national debt in the timely manner the private banks have requested
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solution is to raid public wealth even more to pay off this debt
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let’s give you some funds to help with you that in the form of more privatised debt; if you are from the global south then it is your wealth we have exploited from you which we are lending back to you as a loan with interest to be paid along with some structural adjusments to help plunder your country even more. We can help you by installing our own agents in your governing bodies and if you resist our help we can encourage you with some gunboat diplomacy, sanctioning and coups.
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if you are from the imperialist core then we advise on austerity while we help you plunder the global south some more in the interim
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They are getting some of their own poison.
Soooo austerity soon?
I still think the US debt is meaningless. Don’t see why they would need to do austerity regardless how big the debt is. If they do implement austerity, which they may at some point, it won’t be because of the debt but because they have decided it is in their advantage to do so. Austerity is a means of disciplining the working class. It’s for beating us into submission so we come begging to capital for scraps.
I agree. Which is why the IMF rhetoric is suspect. It almost feels like a new narrative thread is being developed with the end goal of manufacturing consent for austerity in the USA. Why would they do that? I can only imagine the goal is to “reform retirements and pensions” meaning loot the old, loot social security, end Medicaid and Medicare, and blame it on “the other” in order to generate more support for mass imprisonment, sanctions, and war (but I repeat myself).
Let the record show June 10 2024, Freagle puts a bet down that these words from the IMF will be referenced later to justify austerity and a bunch of liberals are going to support killing the poors via neglect because “fiscal responsibility” and “vote blue if you want to fix it”.
The US debt is meaningless so long as the USD remains the global reserve currency. With the current trends of dedollarization that may not last for much longer.
It may be a splitting of hairs as well, but I would argue that domestic US financial policy vis a vis US workers has been austere for fifty years. Expenditures on private industry only grow, while any and all services for the services for the people are ruthlessly cut.
Some hard choices are going to he to be made. Some of you may die but that is a risk the oligarchy is willing to take
The absolute state of global neoliberalism when IMF sounds like a progressive organization:
Gopinath said that in all advanced economies there was “no way of getting around” the fact that fundamental reforms were needed to pensions systems and medical spending as populations age. [I am not sure what kind of reforms she is talking about here but I am being generous.]
“We see grounds in several countries for more progressive taxation,” she said, adding that capital gains and inheritance taxes could be more effectively implemented.
“We do think that the generosity of unemployment insurance can be higher in some countries,” she said, adding that wage insurance to cover the gap between workers’ old and new salaries could also work.
Inheritance was floated just as a suggestion by a Congress member here in India in an interview. BJP used this opportunity hatemonger. Modi in a speech said that through inheritance tax Congress wants to take wealth from Hindus and give it to Muslims. The language that he used was more inflammatory but I don’t know how to translate it without footnotes.
What are they gonna do about that debt, collect it?
The vulture capitalists will want to. The moderates will warn them not to take too much too fast. In the end, refinancing for anything that isn’t repossessed. Rinse and repeat until the empire eats itself. Then:
Edit: ignore me; this applies more to consumer debt and the article is about national debt.
Honestly I would love to see the IMF try to collect the US’s debt, that would be funny as hell.
From the comments:
Taxes need to be raised on the middle class. That’s where all the money is. There’s no more money to be raised in taxing the wealthy.
The west is doomed.
you gotta admit it’s kind of funny to see the same neoliberal logic that destroyed developing countries being applied to destroying burgerland
From the comments.
Would be fun to have Javie Milei come in for a year or 2 with a chainsaw - like an internship in each G7 over a few years 🍿
That would be pretty funny to watch …
lol
You know it’s bad when the IMF of all entities thinks the US is fucked.
>wage bullshit wars >get trillions in debt >"We can't afford healthcare"
