IMF calls on the US to acknowledge 20 trillion debt

IMF Issues Biggest Criticism Of US Policy To Date: Says Treasury Should Put GSE Obligations On Balance Sheet

In another confounding episode of biting the biggest hand that feeds it, the IMF has just issued another criticism of US fiscal policy, and in its just released Global Financial Stability report says that the US should include in its budget the "cost of mortgage loan guarantees and other housing supports."

Not only that but the fund also urges that the Treasury should immediately make its support for the GSEs explicit and carry Fannie and Freddie's roughly $7 trillion in debt (discussed extensively by Zero Hedge over a year ago: "Obama's Budget Has One Small, Missing Piece.... For $6.3 Trillion Dollars") on the books: a move that would send US debt to well over $20 billion and make the ratio of marketable debt (the lowest common debt denominator) to GDP well over 100%.

To wit: "Government guarantees should be explicit and fully accounted for on the government's balance sheet... There is a need for better-defined and more transparent government participation in the housing market, with all such policies, including strict affordable housing goals, transparently shown in the government's budget." Of course this won't happen for many years as otherwise the US would effectively confirm that it is insolvent per various Reinhart-Rogoff ratios, and instead the administration will continue pushing with its misguided plan of offloading GSE obligations on the balance sheets of private institutions.

That would mean putting the Fannie Mae debt on the books... which would mean a 14 trillion $ current debt + Fannie debt = 20.6 trillion total debt.

IMO no way that happens since people would scream bloody murder if the national debt were to jump by 6.3 trillion overnight because of ONE bank... Wall Street would be on fire with corpses of bankers everywhere in the streets.. (well maybe they should do it then, half-kidding)....

The other report from the IMF 2 days ago..
IMF Says US Must Raise All Taxes, Cut All Entitlements By 35% To Contain Future Budget

Well when the elite controlled IMF starts calling US fiscal policy on it's BS, you know the elite is planning to take down the US for good... Usually, the IMF is covering the truth and playing the little games...

But in the last few days, they've been calling the US bluff. And that means IMO that the elite is starting to pull the plug on the USA.... of course to further their ultimate goal of world government with a controlled economy... which they think people will call for when the whole world economy collapses...

Maybe some things that need to happen will actually start to happen now.

I'd rather it be the PEOPLE that are calling for truth in advertising, so to speak, but I'll take a call for truth from wherever I can get it at this point.

The insanity never stops, last thread we have poor Obama that has no vested powers, and now this

Talking about anyone that is in charge, sucks off the American teet for as long as they can, and when they are done you have 2 varying results.
1) throw America away like a spent tampoon
2) beg and plead that you did everything in your power to help the New World Whore-USA.

How about Congress grab its walnuts and reenstate Article I Section 8 of the U.S constitution, then after we have a currency regulated by our government without paying 6% interest on it. Then Congress inpeach Obama for knowingly not upholding his duties as Commander and Chief when he took his oath at his inauguration

This insanity COULD stop if people did there job

I think the IMF needs to STFU.
Otherwise whoever is in charge over there is going to be found dead with a very lovely and touching suicide note next to them.

reply to post by Vitchilo


Like rumblings on a seismograph, the telltale signs on where this economy is going are growing stronger and stronger. When I first started really paying attention to our economic state I thought to myself "this is totally unsustainable". The more I read, the more I was convinced of that being true.

Looks like the chickens are coming home to roost.

Things are going to get hairy. Count on it.

Originally posted by grey580
I think the IMF needs to STFU.

Thing is, they are right. The FED and the federal government is using accounting tricks to hide the true extent of the ``bank bailout``...

Remember those articles from bloomberg?
U.S. Rescue May Reach $23.7 Trillion, Barofsky Says

July 20 (Bloomberg) -- U.S. taxpayers may be on the hook for as much as $23.7 trillion to bolster the economy and bail out financial companies, said Neil Barofsky, special inspector general for the Treasury’s Troubled Asset Relief Program.

The Treasury’s $700 billion bank-investment program represents a fraction of all federal support to resuscitate the U.S. financial system, including $6.8 trillion in aid offered by the Federal Reserve, Barofsky said in a report released today.

“TARP has evolved into a program of unprecedented scope, scale and complexity,” Barofsky said in testimony prepared for a hearing tomorrow before the House Committee on Oversight and Government Reform.

That's gonna throw a monkey wrench in the old US of A's FICO score!!!!!

Seriously . . . my credit rating depends on all my debts, as required by the very banks that won't divulge theirs.

reply to post by Vitchilo


Vitch,read this Thread . There is a Reason the IMF calls the US on its BS now of all Times...Well timed indeed,wouldn´t ya say?

Proceed with caution, I say. Globalists want to End the Fed here in the States (and the Fed does need to go)--however, their agenda is to have a planet-wide IMF-controlled monetary system...Patriots want to End the Fed slowly and in the interim allow competing currencies...

More on this topic:
www.dailypaul.com...

It's potentially worse than 20 trillion. If you include negotiable liabilities over the next 20 years we owe more like 70 trillion. We can account for about 50 trillion through incomme tax collection. There is you 35% increase to balance. This means to run the military, social entitlements and pay off the debt in 20 years takes all of the feds income from taxation.

They do this watch this nations recovery collapse. This is who is amongst this group that has been directing this mess all along/

reply to post by Fiberx


Sorry, pet peeve of mine... Who is "we?" If you're talking about the general populace of the United States, then "we" do not owe squat aside from our personal debts "we" have signed up for over the course of our personal business dealings. The government of the United States is buried in debt. The idiots who were sent to DC are responsible for this farce, NOT ME. There's not a single one of them who have agreed to use the taxpayers' credit line in the past 100 years who doesn't deserve to be slapped to the ground and then kicked mercilessly for ever even suggesting that their debt and their fiscal inadequacies should ever fall on the shoulders of the American people.

reply to post by burdman30ott6




You may as well call it "we" because you, like myself and every other American working in this system, will be paying on this $20 trillion dollar bar tab until we are wearing depends and eating prunes from a can.

Then our children and our childrens grand-children get to carry the burden as tax mules for the next several generations to follow.

You want a glimpse into the future of America?

It will be passing wealthy Chinese business men driving down the interstate in their new Ferrari's while we take the bus to our low wage service jobs.