IMF Proclaimation. . .

In a speech at the China Development Forum in Beijing, the I.M.F. official, John Lipsky, who is the deputy managing director, offered a grim prognosis for the world’s wealthiest countries, which are at a level of indebtedness not seen since the aftermath of World War II.

... Mr. Lipsky said the average ratio of debt to gross domestic product in advanced economies was expected this year to reach the level that prevailed in 1950. Even assuming that fiscal stimulus programs are withdrawn in the next few years, that ratio is projected to rise to 110 percent by the end of 2014, from 75 percent at the end of 2007.

... “Addressing this fiscal challenge is a key near-term priority, as concerns about fiscal sustainability could undermine confidence in the economic recovery,” Mr. Lipsky said. Maintaining public debt at postcrisis levels could reduce potential growth in advanced economies by as much as half a percentage point annually, compared with projections before the crisis, he said.

To reduce debt ratios to the precrisis average of 60 percent by 2030, he said, would require an 8 percentage point swing — to a surplus of about 4 percent of G.D.P. in 2020 from a structural deficit of about 4 percent of G.D.P. in 2010.

... The I.M.F. estimates that the discretionary stimulus spending accounts for just 1.5 percent of G.D.P. Mr. Lipsky said advanced economies would have to take other steps, like changes in pensions and health care programs, other cutbacks in spending and higher tax revenues.




So,  after hearing this,  our elected servants;   with delusions of dictatorhood,  pass a 3 trillion dollar healthcare bill.   What in the heck is really going on here.