How about if policymakers stop taking action as the IMF is urging them to do? All their actions so far seem to have made problems worse rather than better. And it is obvious to anyone paying attention that it is the very same policymakers that caused the problems in the first place, so are they going to fix them? All they know is how to break things not to fix them! And since this is a 'NEW' Dangerous Phase, it is obvious that it has to be worse than the last Dangerous Phase from which we have not yet recovered. The Economy in its present form will never recover, the sooner we all get used to this sad truth, the quicker we can find real solutions!
(Please O please don't act anymore - step out of the way since all you policymakers can do is to make things worse not better!!!)
The world economy has entered a “dangerous new phase” of declining growth that will require policymakers to take action, the chief economist of the International Monetary Fund (IMF) warned Tuesday.
“Global activity has weakened and become more uneven, confidence has fallen sharply recently, and downside risks are growing,” said in the report, which was released prior to the IMF’s annual meetings this week.
In its “World Economic Outlook,” the IMF steeply downgraded projections it made in June regarding the U.S. economy. The international lending organization had predicted a growth of 2.5 percent in 2011 and 2.7 percent in 2012. In just three months, the forecast has changed to 1.5 percent in 2011 and 1.8 percent in 2012.
Even to meet those levels of growth, the U.S. economy would need to expand at a much faster rate in the second half of this year than the 0.7 percent rate of the first six months.
“The global economy has entered a dangerous new phase,” said Olivier Blanchard, the IMF’s chief economist. “The recovery has weakened considerably. Strong policies are needed to improve the outlook and reduce the risks.”
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