The IMF gets shrill

Paul Krugman is routinely called ‘shrill’ for his attacks on Bush’s economic policy, and particularly the shift to large and chronic budget deficits. He certainly invites this, with routine comparisons to banana republics like Argentina. So Krugman took some satisfaction a couple of days ago, in pointing out that former Treasury Secretary, Robert Rubin is now speaking in similarly shrill tones.

Now the IMF is getting shrill too.

Update This is front-page news in most of the Oz papers today, but bloggers got to read it yesterday

5 thoughts on “The IMF gets shrill

  1. While he may have vowed, there has been no program yet to do that, perhaps after he is re-elected , on a promise to cure the financial ills.

  2. I think the IMF alludes to the difficulty , politically, of cutting expenditure to get the budget into balance.

    Like the last spendthrift Reagan there is a lot of political pain when someone with guts tries just that.

    Remember it took Clinton to rid the US of Reagan excesses which a Democrat try it until at least until 2008.

  3. With old style Democrats it was allegedly Tax and Spend.

    Then came Reagan’s Spend and Spin. Supply side spin covered up for greater spending with less taxing. This meant that…

    New Democrats like Clinton were forced to adopt Tax and Spin to wind back the deficit.

    But since there’s no such thing as Dubya-nomics, now we have Spend and Spend.

    No doubt the IMF will be added to the list of do-gooding international talking shops the US chooses to ignore.

  4. The Australian Financial Review headlines ‘IMF lashes Bush over soaring budget deficit.’ Here is Charles Collyns, Deputy Director of the IMF’s Western Hemisphere Department, introducing the report:

    Summing up, the recent expansionary stance of the U.S. fiscal policy has certainly been beneficial, supporting the global economy at a difficult juncture. However, it will be important to develop a credible and robust framework to assure that the U.S. fiscal position is a strong one over the long run. This will require determined action to reduce the federal deficit over the next 5 to 10 years and to tackle the difficult long-term problems of Social Security and Medicare.

    Always pays to read beyond the headline spin.

  5. Via Karen Kwiatkowski’s page “Place Your Bets: Buffett or Bush”

    By Joe Rothstein


    Warren Buffett, the second richest man in the world who is frequently referred to as “the most successful investor ever,” is, for the first time in his life, buying foreign currencies.

    It got little attention at the time, but in November’s Fortune magazine Buffett warned that the rapidly mounting U.S. trade deficit could lead to a dramatic plunge in the value of the dollar and a host of additional economic consequences that could add up to disaster for American families. It’s that assessment that has driven his foreign currency purchases. When November’s Fortune hit the presses it cost $1.22 to buy one Euro. Today the price is $1.28 and climbing.

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