Harvard/IMF White Paper: Western Sovereign Debt exceeds 200 year high; Warns of “Savings Tax” & mass write-offs
European reports came out on January 2nd that a new IMF white paper includes some strong words about the financial status of the West. http://www.imf.org/external/pubs/ft/wp/2013/wp13266.pdf
The IMF working paper states that debt burdens in developed nations have become extreme by any historical measure and will require a wave of austerity. The austerity will consist of either negotiated 1930’s style write-offs, or the toolkit available to the IMF that includes blanket taxes and bail-in of retirement accounts.
As I wrote in my October 24th article “IMF Floats Idea to Levy 10% Tax on European Assets”
there are implications for the US financial system as well. The US is now five years into a historical Quantitative Easing program, as we reported here: http://truthinmedia.com/fmr-head-of-fed-reserve-qe-program-confesses-the-program-is-nothing-more-than-wall-street-welfare/
“The sheer magnitude of the problem suggests that restructuring will be needed, for example, in the periphery of Europe, far beyond anything discussed in public to this point,” said the paper, by Harvard professors Carmen Reinhart and Kenneth Rogoff