Financial Crisis Is Too Big for Developed World to Cope, Ex-IMF Head Says

[Hawkowl]

The crisis threatening the global financial system exceeds the capabilities of developed nations and requires a new International Monetary Fund “debt facility,” former IMF head H. Johannes Witteveen said.

“Unusual problems require unconventional solutions,” Witteveen wrote in an opinion piece in the Financial Times today. “The world’s financial system is threatened by a new crisis that could be even worse than that of 2008.” He was IMF managing director from 1973 to 1978. Renewed signs of economic weakness globally and the downgrading of U.S. debt by Standard & Poor’s have rekindled concern about the quality of government borrowing, especially in Europe. Slumping confidence has wiped $8 trillion from the value of equities in four weeks.

The leaders of euro zone nations have done everything politically feasible to counter the crisis, while the European Central Bank and the U.S. Federal Reserve are close to the limit of their capabilities, Witteveen said. A new fund could tap the currency reserves of China, Japan, the Middle East and European nations such as Germany, he said.


http://www.bloomberg.com/news/2011-08-23/crisis-too-big-for-developed-world-ex-imf-head.html

This should be alarming. The IMF, though perhaps corrupt to the core, is not one to cry wolf.

[elleng]

1. It IS alarming, and I've suspected it for a while.

I don't know about solutions.

[PoliticAverse]

2. So the solution is to get the underdeveloped world to subsizide the developed ?

I'm sure the U.S. Federal Reserve could electronically create a few more trillion $'s without much
trouble.

[valerief]

3. As long as the wealthy aren't taxed, everything will work itself out.

:eyes:

[JDPriestly]

4. Of course.

:sarcasm:

[closeupready]

5. Personally, I am suspicious of the IMF and its motives.

nt

[Hawkowl]

7. I'm not suspicious

I KNOW they are evil at the core. They are the economic mafia of the world. I just think that they are worried that their whole house of cards is about to implode.

[SugarShack]

6. Is this where they change our currency to the "Amero" to compete with the Euro?

[snappyturtle]

9. I'm reaching for my tinfoil hat but not putting it on. I wouldn't be surprised

by much of anything anymore.

[jwirr]

8. Now I would like to hear him tell us about how raygunomics,

Friedman's Chicago Boys, IMF, the World bank, banksters, globalization plans and the credit card industry have all been wrong and that is the reason we are in this mess in the first place. Then and only then will I trust him.

However, I do think we are in a situation that may be more than we can handle and not just on an economic level. Anyone got a really good ideas about how to fix the Horn of Africa? Are we too late to deal with alternative energy? Are we ready for climate change? And what about how to handle the growing unrest and war in the world? Water shortages throughout the world?

[Lorien]

10. Yep, here:

http://www.youtube.com/watch?v=EewGMBOB4Gg