IMF staff urges bolder U.S. action on deficits (warns on *Co's SS plan)

[UpInArms]

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8632086

WASHINGTON, May 27 (Reuters) - The steadily widening U.S. current account deficit poses a significant risk to the global economy and bolder action is needed to cut the shortfall, an International Monetary Fund staff assessment of the U.S. economy said on Friday.

IMF economists also warned that President George W. Bush's plan to let workers divert money into personal savings accounts as part of a proposal to overhaul the Society Security retirement program could push the deficits higher if enacted.

The comments come at the end of the IMF's annual Article IV consultations on the U.S. economy.

The IMF assessment said the U.S. current account deficit was likely to remain near its recent record high and warned there were limits to global demand for U.S. assets.

America's current account gap widened more than expected in the fourth quarter of 2004 to a record $187.9 billion, driving the full-year trade gap to new high of $665.9 billion, according to the government's most recent estimates.

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[bpilgrim]

1. PRIVATIZE SS... he's WORK'n on it CHILL!

http://images.globalfreepress.com

peace

[rodeodance]

2. bush will cut more social programs to advance his Democracy