IMF says sluggish U.S. growth requires easy money policy

Has it ever occurred to anyone that printing money (on going default) might be the strategy to get its debt under control? A closer review of the proposed spending cuts reveals how $38 billion is more like $353 million.

The U.S. economic recovery is so sluggish that the Federal Reserve needs to keep easy money policies in place while the government comes to grip with its debts, the International Monetary Fund said on Monday.

"A credible strategy to stabilise public debt in the medium term and a down payment on fiscal consolidation in 2011 are urgently needed," the IMF said in its World Economic Outlook.

The issue of how to ratchet down the U.S. debt is at near fever-pitch politically, with opposition Republicans in Congress trying to compel the Obama administration to deeper spending cuts.

Source: uk.mobile.reuters.com