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Monday, December 26, 2011

IMF head warns (again for the nth time) that Global Economy is threatened

Blogman's' Note: As noted in some previous blog posts such as IMF head predicts 1930's style Depression and World War 3, Christine Lagarde is at it again warning of pending Economic Doom. Good to know that finally people in positions of power agree with some of us No-Names that have been warning of much the same for several years now.

But is she proposing a different solution this time, one that may actually work? No, she is regurgitating the same decades old propaganda that what Europe needs is more integration not less! She is proposing that Europeans give over their sovereignty to an unelected body of bankocrats, rather BANK-O-RATS that will share their own Dom Perignon and Beluga caviar lifestyle with all Europeans - where have we heard that one before? Alexander the Great and Julius Caesar must be pink with envy as all Europe is enslaved without so much as a shot being fired or an army crossing borders. Had Hannibal figured out that Economic conquest is far more efficient and far more profitable than a military conquest, it might have been Gaddafi that would have been sitting at the head of the Roman Empire or rather the Carthaginian Empire as it more accurately would have been known. It is rather symbolic that Europe which has ruled the world, more or less since the fall of the Persian Empire will be the first Empire to fall followed by the rest of the world. Let not the rest of the world cheer the fate of Europe, their own fate will not be much different!

PARIS (Reuters) - The head of the International Monetary Fund said the world economy was in danger and urged Europeans to speak with one voice on a debt crisis that has rattled the global financial system.
In Nigeria last week, IMF Christine Lagarde said the IMF's 4 percent growth forecast for the world economy in 2012 could be revised downward, but gave no new figure.
"The world economy is in a dangerous situation," she told France's Journal du Dimanche in an interview published on Sunday.
The debt crisis, which continues into 2012 after a European Union summit on December 9 only temporarily calmed markets, "is a crisis of confidence in public debt and in the solidity of the financial system," she said.
European leaders drafted a new treaty for deeper economic integration in the euro zone, but it is not certain that the accord will stem the debt crisis, which began in Greece in 2009, and now threatens France and even economic powerhouse Germany.
"The December 9 summit wasn't detailed enough on financial terms and too complicated on fundamental principles," said Lagarde.
"It would be useful for Europeans to speak with a single voice and announce a simple and detailed timetable," she said. "Investors are waiting for it. Grand principles don't impress."
Part of the problem, she said, has been national calls for protectionism, making it "difficult to put in place international coalition strategies against it."
Lagarde added: "National parliaments grumble at using public money or the guarantee of their state to support other countries. Protectionism is in the debate, and everyone for themselves is winning ground."
She did not specify which countries she was referring to.
Emerging countries, which had been growth engines for the world economy before the crisis, have also been affected, said Lagarde, citing China, Brazil and Russia.
"These countries, which were the engines, will suffer from instability factors," she told the newspaper.
(Reporting by Alexandria Sage; Editing by Alistair Lyon)

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