The IMF Black Helicopter Gang Wants Your Social Security
Co-director, Center for Economic and Policy Research
A few years back there was a fear in some parts about black UN helicopters that were supposedly taking part in the planning of an invasion of the United States. While there was no foundation for this fear, there is basis for concern about another international organization, the International Monetary Fund (IMF).
This week the IMF told the United States that it needs to start getting its deficit down and put cutting Social Security at the top of its “to do” list. This one is more than a bit outrageous for two reasons.
First, the IMF can take a substantial share of the blame for economic crisis that gave us big deficits in the first place. The IMF is supposed to oversee the operations of the international financial system. According to standard economic theory, capital is supposed to flow from rich countries like the United States to poor countries to finance their development. In other words, the United States should be having a trade surplus, which would correspond to the money that we are lending to poor countries to finance their development.