IMF warns of impending debt crisis

[DrHenley]

http://www.telegraph.co.uk/finance/...te-offs-as-Wests-debt-hits-200-year-high.html

Much of the Western world will require defaults, a savings tax and higher inflation to clear the way for recovery as debt levels reach a 200-year high, according to a new report by the International Monetary Fund.

The IMF working paper said debt burdens in developed nations have become extreme by any historical measure and will require a wave of haircuts, either negotiated 1930s-style write-offs or the standard mix of measures used by the IMF in its “toolkit” for emerging market blow-ups.

“The size of the problem suggests that restructurings will be needed, for example, in the periphery of Europe, far beyond anything discussed in public to this point,” said the paper, by Harvard professors Carmen Reinhart and Kenneth Rogoff.

 

[Brent S]

I don't need a Harvard professor or any economic expert to tell me that this country is in way too deep. I think every man, woman and child in this country owes about 60 thousand each with the national debt. I personally think we should prosecute some of the politicians that helped get things this bad. I've already noticed how little a 100dollar bill gets you at the grocery store, and I believe it's going to get a lot worse. I wish us all luck in the next few years, but I think luck happens for those that work hard preparing for it.