Skip to comments.Global economic recovery weakening , says IMF
Posted on 10/08/2012 4:13:09 PM PDT by markomalley
The global economic recovery is weakening as government policies have failed to restore confidence, the International Monetary Fund has said.
It added that the risk of further deterioration in the economic outlook was "considerable" and had increased.
The IMF downgraded its estimate for global growth in 2013 to 3.6% from the 3.9% it forecast in July.
One of the biggest downgrades was to the UK economy, which the IMF expects to shrink by 0.4% this year.
This compares its forecast of 0.2% growth in July. Next year, the UK economy should grow by 1.1%, the IMF said, down from its previous forecast of 1.4%.
In response to the downgrade, the UK Treasury highlighted the fact that the IMF had "repeated its advice that the first line of defence against [slowing growth] should be to allow the automatic stabilisers to operate, monetary policy easing and measures to ease the flow of credit - all of which the UK is doing".
The fund's forecast for global growth this year has been lowered to 3.3% from 3.5%.
(Excerpt) Read more at bbc.co.uk ...
‘government policies have failed to restore confidence’
If they think it’s weakening now wait till they see
what happens if Obama is re-elected!
Simple to fix.
Just print a trillion dollars/euros/rials, whatever.
In fact, let’s just declare leaves to be currency! We can all be millionaires overnight!
Why do you think there is now more interest in unconventional solutions like Steve Forbes' no-loophole low-rate flat tax or the FairTax proposal to completely replace the income tax?
I would say that government polices are primarily responsible for the loss of confident and for failing to restore confidence.
We are in the midst of corporatism or special interest group economics. The government policies are driven by the majority of voters and what they believe the government should do for them. Those that believe the government should only be an impartial arbitrator instead of picking the winners and losers are few now. The difference are too vast for any compromise. This leads to a critical loss of trust between neighbors, a death knell to any society.