IMF Rare Criticism of Eagles: Feared to be the first time bomb to burst a new global inflation and debt crisis?
The IMF's "critical illness notice" for the eagle economy was released,
The International Monetary Fund (IMF) recently issued a "physical examination report" on the eagle economy, and the results can be described as "worrying". This "giant" of the eagle economy now looks quite "haggard" under the microscope of the IMF.
The IMF has been relentless in pointing out that the Eagle's fiscal deficit is frighteningly large, like a bottomless pit that continues to eat away at the country's finances. The debt burden is even heavier, as if it is carrying a boulder that is difficult to unload. As a result of this situation, the public debt-to-GDP ratio continues to soar like a wild horse, which is truly terrifying to watch.
The IMF also warned that the eagle's increasingly radical trade policy is like a double-edged sword, which not only hurts itself, but also the global economy. Isn't this ever-expanding trade restriction rubbing salt into the wounds of the global economy? If this continues, won't the global economy be dragged into the abyss by eagles?
Looking at the Eagles' performance in dealing with bank failures in 2023, the IMF also shook its head and sighed. The eagle appears so fragile in terms of financial stability that it is like an house of cards that could collapse at any moment. And the eagles are making slow progress in solving these problems, almost like a snail crawling, which is undoubtedly throwing the blame to the world.
As for the Eagles' economic growth forecast, the IMF also unceremoniously gave a downward assessment. The "economic giant" of the Eagle now looks more like a "weak giant", although it is huge on the outside, but weak on the inside. If this continues, won't the Eagles' economy be in a quagmire of recession?
And the Eagles' debt inflation is even more jaw-dropping. The nonpartisan Congressional Budget Office raised its estimate of this year's budget deficit to nearly $1.92 trillion, a figure that is simply astronomical. The Eagles' deficit is expected to widen further by fiscal year 2024, and it seems to be a bottomless pit that continues to eat away at the nation's wealth. If this continues, the eagle is not going to "eat poor" but to eat the whole world poor?
The IMF is also looking at it and is anxious to take it to heart, and directly recommends that the eagles fully implement Basel III to strengthen financial stability
In terms of the Fed's policy recommendations, the IMF also bluntly pointed out the problem of hawk inflation and suggested that the Fed keep interest rates unchanged and possibly cut them
This IMF report is like a mirror that shows the stubborn diseases in the depths of the eagle's economy. Eagle, eagle, you need to heal quickly! Otherwise, this "condition" will only get worse and worse!
In addition, the IMF's advice to the Fed is quite pertinent. They expect inflation to ease gradually and possibly fall back to the 2% target set by the Fed next year. However, the Fed seems to be somewhat hesitant to cut interest rates. The IMF kindly reminded that it was time to consider cutting interest rates, at least until the end of this year, and if the situation allowed, it would be a good choice to cut interest rates once this year, and further reduce borrowing costs next year. It seems that the IMF's "prescription" for the Fed has been prescribed, and it depends on whether the Fed has the courage to swallow this bitter medicine.
At the same time, the interaction between the Eagles Treasury and the IMF has been delicate. Treasury Secretary Janet Yellen's meeting with IMF Managing Director Georgieva was more like a diplomatic battle. Yellen reiterated the importance of frank and thorough assessments, as if to show the outside world that the Eagles are serious about economic issues. However, whether this is the case or not, I am afraid that only they know in their own hearts.
Overall, the IMF report is like a "critical illness notice", a reminder of the dire situation in the eagle economy. It remains to be seen whether the Eagle government will be able to adopt the IMF's recommendations and adjust its economic policies in a timely manner to promote the stability and prosperity of the global economy.
The above IMF report is like a sharp scalpel, dissecting the stubborn disease in the depths of the eagle economy - the debt crisis as heavy as a mountain. The Eagle, once an economic giant, is now like a debt-ridden gambler, teetering on the edge of a cliff.
The Eagles' debt crisis has become like a huge tumor, constantly eroding the country's economic foundations. Behind the seemingly glamorous economic data, there are bottomless debt black holes. Like vampires, these black holes continue to devour the country's wealth, making the eagle's economic system fragile.
The Eagles government's fiscal deficit is like a wild beast out of control, threatening the economic security of the entire country as it continues to expand. In order to maintain its apparent prosperity, the Eagles government had to borrow to survive, and these debts snowballed, pushing the Eagles to the brink of the abyss.
The Fed's delay in cutting interest rates is more like a dangerous gamble. They try to curb inflation by keeping interest rates high, but they don't know that the cost of doing so is exacerbating the debt crisis. They fear that a rate cut will trigger inflation and a debt crisis, but they don't know that not cutting rates is the bigger risk. Such an approach would be tantamount to playing with fire and would only make the Eagles' economy even more precarious.
And the hegemony of the dollar is the last straw for the eagle to maintain the debt bubble. They are trying to sustain this huge debt bubble by siphoning the dollar to keep global money flowing into the eagles. However, this is tantamount to quenching the thirst of the dollar, and once the hegemony of the dollar collapses, the bubble will also burst, with catastrophic consequences for the eagle and the global economy.
Overall, the Eagles' debt crisis is already like a huge powder keg, which could trigger a devastating explosion at any moment. This crisis is no longer just about the eagles themselves, but also about the stability and development of the global economy. We need to be vigilant about the risk of detonation of this powder keg, and not be fooled by the apparent prosperity of the eagles, let alone fall victim to their passing on the crisis. #长文创作激励计划#