IMF’s comments have been employed and perhaps frequently misused in US political debate on economic/fiscal policy. I doubt it was just a carelessly political statement from the IMF, but rather an effort to more accurately convey its message and deliberately but methodically enter the discussion even if it may be dragged into election style debate. The consequences of the current discussion/debate in the US as well as Eurozone could set course that over the next decade could determine recessionary headwinds or a return to a momentum of growth. The implications will go beyond economy and politics – there is a sense of rising discord as much among populations experiencing disparate treatment as between countries. “Extend …Unemployment Insurance & Payroll Taxes” While expressing disappointment that the US Congressional Joint Select Committee, (“Supercommitte” on deficits and budget), failed in reaching agreement, the IMF appears more focused on the potential negative consequences of overt or implicit austerity for the moment: “it’s also important, we believe, to extend some supportive fiscal measures such as unemployment insurance and payroll tax relief into next year since activity remains weak and risks loom.” IMF’s Gerry Rice, Acting Director, External Relations. Longer-Term Structural Reform Still Needed with Taxes & Budget Cuts: “We were disappointed at the failure of the Joint Select Committee to reach an agreement in view of the pressing need for the US to address its long-term budget problems. Although the automatic cuts should deliver fiscal savings, starting in 2013, further savings will be needed over the next decade and consolidation should include both entitlement reform and higher revenues.” The IMF and most other UN/international mandated institutions have come to see the risk of recession as being greater than the relatively more longer term concerns over budget/deficit spending. Read: From UN Department of Economic and Social Affairs (DESA)- diplomaticallyincorrect.org/films/blog_post/fiscal-austerity-pushing-globe-into-recession-by-ambassador-mo/42226 See: Film Report: from OECD Highly Insightful Film Report – “Economic Risks Downside”- diplomaticallyincorrect.org/films/movie/economic-risks-downside-oecd/29294 By Ambassador Muhamed Sacirbey Facebook – Become a Fan at “Diplomatically Incorrect”

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