October 10, 2012 Leave a comment
IMF: Global economic slowdown is getting worse, US must avoid ‘fiscal cliff’ … Updated at 8:30 a.m. ET The International Monetary Fund said the global economic slowdown is worsening as it cut its growth forecasts for the second time since April and warned U.S. and European policymakers that failure to fix their economic ills would prolong the slump. Global growth in advanced economies is too weak to bring down unemployment and what little momentum exists is coming primarily from central banks, the IMF said in its World Economic Outlook, released ahead of its twice-yearly meeting, which will be held in Tokyo later this week. − NBC
Dominant Social Theme: The IMF is concerned.
Free-Market Analysis: The IMF is getting a good deal of play with a worried world forecast. The concern was stated in the IMF’s “World Economic Report.”
Here’s a quote: “A key issue is whether the global economy is just hitting another bout of turbulence in what was always expected to be a slow and bumpy recovery or whether the current slowdown has a more lasting component,” it said. “The answer depends on whether European and U.S. policymakers deal proactively with their major short-term economic challenges.”
This is a typical elite theme – that only “policymakers” can deal with issues relating to the economy. The idea that the market itself could deal with economic issues is not one the top people at the IMF would be pleased to consider.
In fact, as we’ve often stated, the entire EU downturn, starting with the economic crisis of 2008 has been a kind of engineered takedown. It began with determined bank lending and ended with a “sovereign crisis.”
But EU officials, decades before, are on record as stating that an economic crisis would have to be created in order to strengthen a political union. And that’s just what’s happening.
The IMF is front-and-center in all this because many of the policies now being applied to the EU’s Southern – economically bleeding – flank have been developed by the IMF and now go under the all-embracing nomenclature of “austerity.” Here’s some more from the article:
Meanwhile, German Chancellor Angela Merkel arrived in Greece on her first visit since Europe’s debt crisis erupted here three years ago, braving protests to deliver a message of support — but no new money — to a country seen by many as a prime example of Europe’s ongoing and entrenched economic woes …