IMF’s epic plan to conjure away debt and dethrone bankers … So there is a magic wand after all. A revolutionary paper by the International Monetary Fund claims that one could eliminate the net public debt of the US at a stroke, and by implication do the same for Britain, Germany, Italy, or Japan. The IMF report says the conjuring trick is to replace our system of private bank-created money. – Ambrose Evans-Pritchard/UK Telegraph
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Government should be in charge of money not the market. Continue reading
The latest public sector borrowing data shows that the UK budget deficit is widening once more. Indeed despite a series of accounting adjustments which obscure the true picture, it is clear that the underlying trend is also towards rising, not falling deficits.
The Office for National Statistics reports that the June public sector borrowing total was £14.4bn, £500 million higher than in the corresponding month in 2011. However monthly data are erratic and subject to significant revision. Taking the data for the first 6 months of this year as a whole is more meaningful and shows that the deficit over that period is £37.3bn.
But this total is flattered by the strange decision relating to the acquisition of the Royal Mail Pension funds ahead of planned privatisation. In effect the government has decided to include the assets of this fund, but not its much greater pension liabilities in its own accounts. This and another smaller transaction lowered government borrowing by £30.3bn. The underlying deficit, excluding these transactions is therefore £67.6bn in the first 6 months of this year.
full story here: Socialist Economic Bulletin: The UK’s budget deficit is rising not falling. - By Michael Burke
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BRUSSELS – The euro will not “vanish” this year, but problems within the eurozone will slow down the global economy, with the International Monetary Fund set to lower its growth predictions in an upcoming report, its chief Christine Lagarde said Friday (6 January).
“Will 2012 be the end of the euro currency? My answer is I don’t think so,” she told reporters after meeting the South African finance minister.
“It’s a young currency, it’s a solid one as well. You have, within the zone, not in relation with the currency, serious pressures and issues concerning the sovereign debt, concerning the strength of the banking system, but the currency itself is not one that would vanish or disappear in 2012,” she added.
via EUobserver.com / Economic Affairs / IMF chief: End of euro unlikely in 2012, but crisis will drag on. BY VALENTINA POP