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The U.S. now suffers from these 5 dead giveaways of an emerging-market economy in trouble, former IMF official says — ‘It pains me to say it’.
By Stella
Instead of an advanced economy that leads the world, the US is looking more like a troubled emerging market, according to a former IMF official, who also warned that there’s no bailout big enough that could put things back on track or shield the rest of the global economy from the repercussions.
The world’s biggest economy may be headed for some quantitative speed bumps as growth slows, but a former International Monetary Fund official warned that a drastic qualitative shift also is underway.
In fact, the changes are so fundamental that the US is now exhibiting surefire traits of an emerging-market economy in trouble, according to Desmond Lachman, a senior fellow at the American Enterprise Institute and a former deputy director of the IMF’s policy development and review department.
First, Lachman pointed to excessive use of tariffs, which stifle competition, increase inflation, curb growth, and fuel corruption by giving government officials the power to grant exceptions.
That’s as President Donald Trump has imposed tariffs on Canada, Mexico, China, steel and aluminum, while threatening duties on Europe, autos, chips, and pharmaceuticals. He has also reaffirmed April 2 as “liberation day,” when reciprocal tariffs will take effect.
Source: Finance.Yahoo
