International Monetary Fund sharply downgrades outlook for US economy

Source

The International Monetary Fund has slashed its outlook for the U.S. economy and global growth through 2012.

In its September 2011 World Economic Outlook, released Tuesday, the international lending organization said it now expects the U.S. economy to grow just 1.5 percent this year and 1.8 percent in 2012, down from its June forecast of 2.5 percent in 2011 and 2.7 percent in 2012.

Overall, advanced economies are facing anemic growth of only 1.6 percent in 2011, the IMF said in its latest forecast, adding that the global economic recovery is slowing, with world growth projected at 4 percent in both 2011 and 2012, down from over 5 percent in 2010.

"The global economy is in a dangerous new phase," the IMF said. "Global activity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing."

Well, nothing like beating a dead horse hey?

Just because they are predicting a 1.5% growth this year doesn't even matter, it's the people of the country that matter, no one cares about GDP or the countries biggest companies. People are losing their homes and jobs at an unprecedented pace and having a hard time supporting their family.

Why does this make the news when people out there are dying because they have no health insurance.

All things are going to do is get worse because we keep approaching the solution to the problem wrong. Injecting money into big companies does not work, we tried that already.

Einstein said the definition of insanity is doing the same thing over and over again while expecting a different result...Well I guess the US government is insane then....

Any thoughts?

Pred...

it will be riots soon! you watch! i won't cast the first stone...but i've got the 2nd, 3rd and 4th stone in my pocket..

is it possible that revolution isn't just a necessary thing...but instead, it is part of the cycle?

Canada isn't doing much better either the IMF cut our forecast for next year to 1.9% so I do believe problems are going to arise very soon.

reply to post by hypr2011


Of course we are just as bad, our economy is intertwined with the US's, if they do bad so do we. We were all living a dream thinking we were going to do well anyways. This is just a reality check.

Pred...

Well I have hope. Next year we should replace many of the idiots in Congress and the White House with new idiots who will try something different I hope. Maybe if someone actually reduces government spending and cuts out several laws and regulations, our economy and businesses won't feel so stifled and will start hiring here in the US. We need a business friendly government that understands businesses need to grow here to create jobs here in this country. Many other countries like China and Brazil have their own requirements for foreign companies to open factories in their countries to sell products. I believe we lack such requirements. Then we have powerful unions here attempting to shut down factories and jobs if a large company decides to expand in a state other than the union home state.

The company could have expanded in a foreign country just as easily and they would not have any lawsuit in my opinion. We need a government that understands cutting out non value added expenses everywhere instead of adding layers of bureaucracy and red tape and extra taxes everywhere you look. For instance Obama talked about raising costs for oil and gas companies. Here in my local town, gas prices at the pump jumped 10 cents everywhere in less than a day. Granted I think they overeacted and then they dropped prices all across town 5 cents the next day but that's what happens when you add costs, the trickle down effect will add to our costs at the gas pump and at the grocery store.

People and companies with any business sense are going to try to minimize their expenses and maximize their revenue. We need to elect politicians who don't feel a need to maximize government revenue but feel a need to make the economy grow through sound business sense and decisions. I think the US government already gets enough revenue, they need to cut back spending and stop giving it out to those who never contributed.
So far there has been no serious effort at cutting spending in this country. It's been all about politics in my opinion.