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View Diary: Austerity doesn't work: New IMF report details the damage (167 comments)

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    This is the US received the warning from the IMF and the G20 -- last November:

    U.S. fiscal cliff looms large at Mexico G20 meet

    MEXICO CITY | Thu Nov 1, 2012 4:38pm EDT
    (Reuters) - World finance chiefs this weekend will press the United States on how it can prevent its fiscal problems from hitting the global economy and will seek reassurance from Europe that it has a grip on its debt crisis.


    "Every member country is worried about the U.S. fiscal cliff," one G20 source said on condition of anonymity. "What we will do is add more pressure on U.S. officials and warn them that this is a real danger to the world economy. I believe they understand the danger here, but not much can be done before the election."

    Unless the fractious U.S. Congress can strike a deal, about $600 billion in U.S. spending cuts and higher taxes are due to kick in on January 1, threatening to push the U.S. economy back into recession and hurt world growth.

    Not only are tax cuts enacted under President George W. Bush set to expire, but automatic spending cuts designed to exert pressure on lawmakers to strike a long-term budget deal will also take effect. The U.S. Congress will also soon face the need to raise the nation's debt limit to avoid a default.

    The G20 was not reported at all in the US.

    Denial is a drug.

    by Pluto on Thu Jan 03, 2013 at 05:45:03 PM PST

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