IMF paper warns of ‘savings tax’ and mass write-offs as West’s debt hits 200-year high

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Comment:   When the whole of Western Civilization is structured around debt, and the continued creation/increase of debt, implementing a “savings tax” and “mass write-offs” is only a temporary solution.  Without a fundamental change to how money is created within the system, debt will continue to accumulate and sometime down the road, 5 years, 10 years, maybe 15 years, we will find ourselves back in the same situation, or worse.  – JC

FROM THE TELEGRAPH

Debt burdens in developed nations have become extreme by any historical   measure and will require a wave of haircuts, warns IMF paper

By Ambrose Evans-Pritchard

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.

Full Article:

http://www.telegraph.co.uk/finance/financialcrisis/10548104/IMF-paper-warns-of-savings-tax-and-mass-write-offs-as-Wests-debt-hits-200-year-high.html