Monday, July 11, 2011

U.S. Won't Take IMF's Medicine

The IMF is notorious for requiring recipients of its aid packages to undergo draconian austerity measures.  Imposing similar measures upon the U.S. might actually be effective in reducing the country's debt.  Alas, the U.S. has little appetite for anything but political theater and empty gestures.  Would-be debt reducers are unwilling to tell the American people that their debt-driven party is over.  They'd rather just pretend to cut deficit spending and push their luck to see just how much uncertainty the bond market will tolerate. 

My fellow Americans need to know that delaying their inevitable reduction in living standards will only make said reduction more harsh and sudden when it comes.  European leaders are finally coming to terms with the inevitable consequences of delaying Greece's insolvency and debt restructuring.  The sooner we come to terms with our own country's need to quit the debt binge, the faster our prosperity can return.