(The Epoch Times)—The International Monetary Fund (IMF) has issued a stark warning about the rising tide of public debt in countries across the globe, with the United States standing out because of its persistent fiscal deficits and mounting spending pressures.
The IMF’s latest Fiscal Monitor report, released on Oct. 15, projects that global public debt will exceed $100 trillion—equal to about 93 percent of global gross domestic product (GDP)—in 2024, and that it could approach 100 percent of GDP by the end of the decade. The United States, in particular, faces significant risks if fiscal policies are not adjusted urgently.
The report emphasizes that countries, including the United States, need to address debt risks with carefully crafted fiscal strategies. It warns that debt levels could be worse than anticipated because of large spending pressures, sizeable unidentified debt, and overly optimistic debt projections.
Unidentified debt, which refers to liabilities that do not appear explicitly in budget documents—such as contingent liabilities, losses at federally owned enterprises such as the U.S. Postal Service, and other off-balance-sheet obligations—poses a significant risk to debt sustainability, according to the IMF.
“There are good reasons to believe that future debt levels could be higher than currently projected,” the report’s executive summary states, highlighting that actual debt-to-GDP ratios three years ahead tend to be about 6 percentage points higher than originally forecasted, on average.
The IMF attributes the potential underestimation of debt levels to several factors, including a political climate increasingly favoring higher government spending. This spending is being driven by concerns around security, an aging population, and the push to invest in green transitions.
“Rebuilding fiscal buffers in a growth-friendly manner and containing debt is essential to ensure sustainable public finances and financial stability,” the report urges.
In a related blog post titled “Global Public Debt Is Probably Worse Than It Looks,” IMF economists assert that current efforts to curb debt growth are insufficient. Delays in fiscal actions, they argue, will lead to even higher costs and greater risks.
“Experience shows that high debt and lack of credible fiscal plans can trigger adverse market reaction, constraining room to maneuver in the face of turbulence,” the economists wrote, emphasizing the need for proactive measures such as paring back spending.
The IMF’s analysis shows that planned fiscal adjustments—such as reducing spending by 1 percent of GDP over six years—are insufficient to stabilize debt. Instead, a cumulative tightening of 3.8 percent of GDP is needed to significantly cut debt levels, the economists contend, with the effort required in the United States being “substantially greater.”
Without substantial fiscal adjustments, U.S. debt will continue on an unsustainable path, the report warns. The country faces mounting spending demands, largely because of health care costs, an aging population, and defense needs, all of which are exacerbated by growing geopolitical tensions.
The IMF identifies the reform of mandatory spending programs, such as Social Security and Medicare, as a crucial step. These programs account for a large and inflexible share of the U.S. budget, and reforming them could help rein in expenditures. Besides spending cuts, the IMF suggests that the United States could raise revenues by raising taxes or removing tax exemptions.
The IMF’s newly developed “debt-at-risk” framework—a tool used to estimate potential debt outcomes under different economic conditions—indicates that U.S. public debt could rise sharply under adverse scenarios.
Stronger fiscal governance is also essential, according to the IMF, which describes it as “key to mitigating the buildup of unidentified debt and containing debt vulnerabilities.” Countries with better fiscal governance—marked by budget transparency and adherence to fiscal rules—tend to have lower levels of unidentified debt, even during times of financial stress.
It’s becoming increasingly clear that fiat currencies across the globe, including the U.S. Dollar, are under attack. Paper money is losing its value, translating into insane inflation and less value in our life’s savings.
Genesis Gold Group believes physical precious metals are an amazing option for those seeking to move their wealth or retirement to higher ground. Whether Central Bank Digital Currencies replace current fiat currencies or not, precious metals are poised to retain or even increase in value. This is why central banks and mega-asset managers like BlackRock are moving much of their holdings to precious metals.
As a Christian company, Genesis Gold Group has maintained a perfect 5 out of 5 rating with the Better Business Bureau. Their faith-driven values allow them to help Americans protect their life’s savings without the gimmicks used by most precious metals companies. Reach out to them today to see how they can streamline the rollover or transfer of your current and previous retirement accounts.
The Best Thing for America Would Be a Donald Trump Blowout
by The Federalist
If Democrats had their way, Donald Trump wouldn’t be anywhere near the presidency again. So wrote MSNBC’s Hayes Brown on the eve of the 2024 election’s final day. But Trump is near the presidency — perhaps by decisive margins — and Democrats are apoplectic. The “biggest contributor to the unease…
If These Two States Go to Trump Early, We Can Have Results on Election Night [VIDEO]
by Rumble Video
Two blue states, Virginia and New Hampshire, are in play during the presidential election based on the most recent polling data. If Donald Trump can achieve victory in both of these states early, it’s possible that we can get election results on Election Day. Otherwise, it could be weeks…
Most Accurate Pollster From 2020 Drops Final Numbers
by JD Rucker
Atlas Intel, which was hands down the most accurate public poll during the 2020 election, just dropped its final poll of the season. It points to landslide victory for Donald Trump. If Kamala Harris is able to win Minnesota and Virginia, two blue states that are in jeopardy of being…
Vivek Ramaswamy’s ‘Anti-Woke’ Financial Firm Moving To Dallas
by Dallas Express
Strive Enterprises, co-founded by former Republican presidential candidate Vivek Ramaswamy, is slated to move its headquarters to Dallas. The wealth management firm, launched in 2022, is known for its “non-woke” and anti-ESG exchange-traded funds (EFTs). ESG, which refers to environmental, social, and governance policies, is incorporated into the investment mandates…
Regardless of who wins the election, economists are pointing to physical gold and silver as hedges against economic turbulence ahead. Reach out to our sponsors at Genesis Gold Group, a faith-driven precious metals company, to learn how you can rollover or transfer your retirement accounts into a Genesis Gold IRA.
Fed Set to Shift to Moderate Interest Rate Cuts, but the Path to Lower Rates Remains Uncertain
by The Epoch Times
The Federal Reserve’s policy-making arm, the Federal Open Market Committee (FOMC), will likely shift from the aggressive interest rate cut during its September meeting to a moderate cut in its November meeting, to be held on Nov. 6 and Nov. 7. However, the path to lower interest rates remains to…
10 Times as Many Illegal Immigrants Came to US as Jobs Were Created Under Biden-Harris Admin in October
by The Post Millennial
The Biden-Harris administration allowed for 10 times the number of illegal immigrants into the US in October as jobs created by the private sector during the same time. This comes as border and economy have two of the top main issues for voters in the election. While businesses only created…
It Was the Night Before the Election, and Everyone Was Freaking Out
by Michael Snyder
(End of the American Dream)—I have never seen so much doubt, worry, anxiety, fear and panic as we approach a presidential election. All over the country, people are freaking out right now. Democrats are freaking out because the early voting numbers are so dramatically different from 2020. Republicans are freaking…
Losing Power? The Elites and the Leftist Mob Would Rather Burn It All to the Ground
by Brandon Smith
(Alt-Market)—It’s been a long time since we’ve seen a significant positive evolution within American society. In the early days of the Ron Paul movement I remember the hopeful groundswell of support for a new conservative epoch that adopted a little Libertarianism and a recognition that most “conspiracy theories” are actually…
“Not Patterns That You’ve Seen”: CNBC Guest Says Many Trump Voters Were Democrats “20 Years Ago”
by Harold Hutchison, Daily Caller News Foundation
(DCNF)—A former Trump administration official told CNBC host Joe Kernen Monday that a lot of voters who backed former President Donald Trump were Democrats during the 2004 election. Trump has gained support among both black and Hispanic voters, largely due to the economy and immigration, before President Joe Biden announced…
The New Kennedy-Nixon Moment: Why Politicians Must Master Podcasts to Win
by Daily Signal
(The Daily Signal)—Jeff Bezos is right. Americans do not trust the news media, but he misunderstands why. Americans are tired of talking heads and the opinions of editorialists masquerading as journalists. But this should not be confused with declining interest in news or politics; viewers are simply moving to channels…
‘All Government’: JD Vance Spotlights the ‘Kamala Harris Economy in a Nutshell’
by Daily Wire
Sen. JD Vance (R-OH), a venture capitalist-turned-politician who is now the running mate of former President Donald Trump, argued this weekend that the U.S. economy under their rival in the 2024 White House race, Vice President Kamala Harris, is defined by a growing number of government jobs while the private…
Final Reminder of the Three Issues Driving This Election
by JD Rucker
(Substack)—In case you hadn’t noticed, tensions are high. Americans are at each other’s throats — sometimes literally — as we approach the finale of the most insane election cycle in history. The sitting President ended his bid for a second term. His opponent was charged with dozens of made up…
If Kamala Wins, Prepare for Climate Change Authoritarianism and the Destruction of America’s Economy
by Ethan Huff, Natural News
(Natural News)—When it comes to “green” energy policies, California is often looked at as the model and example for other states. Did you know, though, that California ranks barely above the world average for so-called “fossil fuel” usage, even as it sits on large reserves full of crude oil and natural…
