The IMF chief made these comments during this year’s Milken Institute Global Conference.
The moderator, Zanny Minton Beddoes, Editor-in-Chief for The Economist, noted that “one thing that perplexes me is the size of the fiscal debt,” saying that there was a time when having 3% deficits larger than the GDP was seen as worrisome, but the U.S. is now at 7% for its fiscal debt policy, larger than its outstanding defense budget, and so far there have been no real indications of this slowing down.
When asked about the urgency of the situation, Georgieva said the U.S. “has some entitlement policies that need to be addressed.” She referred to the U.S. as an “ageing country” that needs to be mindful of what it spends on.
When pushed harder to reflect on the macro outlet this presents, the IMF head called it “mind-boggling” and explained that this cannot continue forever.
It cannot go like this forever, because the … burden on the U.S. is going to cripple spending that is necessary to make for servicing the debt. To pay 17-plus percent in debt service is just mind-boggling.
We know that if the U.S. needs to continue to fund itself by borrowing, there is opportunity cost to this money, it doesn’t go to emerging markets where it can finance jobs and business opportunities for American companies.
[…] It’s just not healthy for the economy long term.
Watch the entire interview here.
AUTHOR COMMENTARY
Although she admitted to the obvious, Georgieva still tried to paint the situation with a broad brush and a pallet of vivid colors. But for her to make such an overt, obvious statement such as this tells you and I the situation is quite bad and is at its breaking point.
She mentions that the dollar is this privilege that the U.S. has, and that’s true, but we also know that the currency is failing and the world is rapidly shifting away from the dollar, namely that of BRICS; as the world is prepping to introduce the new digitized system of digital IDs, CBDCs, and tokenization.
And yet Biden’s Chief Economist apparently has no clue how money works and why we keep printing infinite, funny money. Indeed, mind-boggling! SEE: Joe Biden’s Chief Economist Left Baffled Trying To Answer How Money Works And Why The US Keeps Printing Money
The American empire is primed and ready to collapse, and the powers in the club know this and are carefully orchestrating this controlled demolition, by the Lord’s hand.
Job 12:19 He leadeth princes away spoiled, and overthroweth the mighty. [23] He increaseth the nations, and destroyeth them: he enlargeth the nations, and straiteneth them again.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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None of this is going to go like ‘the powers that ought not be’ plan. ‘They’ are intending to keep their ill gotten gains in tact. Most assuredly, God has other plans. These evil entities will be weeping and howling.