IMF sounds alarm on U.S. debt, warning ‘something will have to give’

April 16 (UPI) — The International Monetary Fund warned the United States on Tuesday that the government’s rampant spending and growing national debt is not sustainable and could threaten the global economy.

“Something will have to give,” the Washington-based nonpartisan financial agency of the United Nations warned, despite signs of economic growth.

In its latest World Economic Outlook, published twice a year, the IMF warned Tuesday that the U.S. national debt and fiscal deficit threaten to send sky-high inflation levels even higher.

The IMF said the U.S. federal budget deficit grew from $1.4 trillion in fiscal 2022 to $1.7 trillion last year. The debt, which surpassed $34 trillion, is on track to exceed $45.7 trillion within a decade, according to projections by the Congressional Budget Office.

“The exceptional recent performance of the United States is certainly impressive and a major driver of global growth, but it reflects strong demand factors as well, including a fiscal stance that is out of line with long-term fiscal sustainability,” according to the IMF.

“This raises short-term risks to the disinflation process, as well as longer-term fiscal and financial stability risks for the global economy since it risks pushing up global funding costs.”

About the Author: Patriotman

Patriotman currently ekes out a survivalist lifestyle in a suburban northeastern state as best as he can. He has varied experience in political science, public policy, biological sciences, and higher education. Proudly Catholic and an Eagle Scout, he has no military experience and thus offers a relatable perspective for the average suburban prepper who is preparing for troubled times on the horizon with less than ideal teams and in less than ideal locations. Brushbeater Store Page: http://bit.ly/BrushbeaterStore