IMF Report Should Scare Us

[Joanne98]

As usual, I go to the places where the power brokers hang out to find out what they think and where everyone plans to go. Today, we visit the International Monetary Institute to look at some darling charts and graphs and to read what they think is going on in world finance and trade. The US is viewed as the ‘engine of world trade’ and this is due to the simple fact, we get to overspend like drunk monkeys. And I was amused to see that, as per my previous predictions, the IMF wants a return to the pre-2007 status quo. I say, this is a hopeless dream but we will have some of it before we have to do what has to be done to correct our trade imbalances..

Hope springs ever eternal. But underlying this is some significant despair. The IMF directors really do think the central bank wand waving business has averted international meltdowns via saving Goldman Sachs, HSBC, Citibank, JP Morgan and the Bank of America, the 5 main holders of 85% of the derivatives market. The feeling seems to be, if these giants holding onto the biggest financial bubble in the history of humanity survives, all is well. Of course, this is foolish. All is not well, so long as this creature, the Derivatives Beast, is kept alive.

Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with the United States

Executive Directors noted that the U.S. financial and economic crisis has had severe domestic as well as international repercussions on financial stability and growth. Directors commended the authorities’ forceful and internationally coordinated actions to stabilize and repair the financial sector, bolster domestic demand, and address international spillovers. As a result of their increasingly strong and comprehensive policy measures, the sharp fall in economic output seems to be ending, and confidence in financial stability has strengthened. Nevertheless, with financial strains still elevated, the recovery is likely to be gradual, and risks are tilted to the downside. In addition, potential growth could remain well below past trends for a considerable period. Nevertheless, the long-term growth effects expected from structural policies now being implemented were also noted, and a few Directors expected the crisis to have little lasting effect on potential growth, given the flexibility of the economy.


....

Financial stability has returned to the Big 5 holders of the Derivative Beast. They are doing just fine, thank you. What is not doing just fine are all the nations that were raided so the Big 5 could be recapitalized and all the hazards and risks transfered to many millions of innocent humans who had absolutely nothing to do with the global banking bubble and collapse. Our reward for saving the Big 5?

We get YEARS of low growth. Years! Why is this? Well, to balance the budgets and pay for this mess, we will all be forced by the IMF to tighten our belts and live on less. Instead of eradicating Goldman Sachs, JP Morgan, Citigroup, HSBC and Bank of America, we saved them and their beloved bonuses and are going to eradicate Social Security, healthcare and our jobs

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http://emsnews.wordpress.com/2009/08/01/imf-report-should-scare-us/#more-4769

[ixion]

1. with Credit Cards forcing their customers to close their accounts or

pay crazy-high interest rates, I doubt very much we'll see a return to the status quo. The consumer has neither the money nor the wherewithal (credit) with which to continue their drunken-monkey spending spree.

[Lerkfish]

2. as always, if you, or any of your IMF force gets captured, we will disavow all knowledge, Mr. Phelps

(sorry, I couldn't help myselF)

[truedelphi]

3. I'd watch out if I were you. I am

Betting that Joanne 98 has some pretty clever items to help her stave off
anything anyone tries on her.