Monday, July 12, 2010

Dean Baker: The IMF is Coming for Your Social Security
Dean Baker writes in this column that the IMF is stressing U.S. deficit reduction and has identified social security as the place to start cutting.

Baker's article notes why the IMF is full of crap.

I have written quite a bit about the dangers of "austerity." The IMF austerity program is a proven recipe for disaster. Cutting social security will pummel aggregate demand and will, in the end, exacerbate deficits, rather than improving them.

Additionally, the U.S. deficit does not "crowd out" savings because the US is the world currency reserve.

The IMF is for all intents and purposes a kind of "terrorist" organization that has wrecked havoc upon nations. The U.S. would be unwise to follow its advice...

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