IMF: Global Economy Threatened

Another Day, Another Euro

This has to be one of the most ridiculous pronouncements made by a governmental body in some time, not because it is inaccurate, but because they’ve apparently just now taken notice.  YahooNews is reporting that the IMF’s worried about the global economy, and it’s new head, Christine Lagarde is pointing out the problem as a “crisis in confidence in public debt.”  No, really, she said this.  (For her next trick, Lagarde will likely tell you the sky is blue and that the sun rises in the East, while she’s giving out revolutionary information.) What Lagarde doesn’t mention is the IMF’s role in all of this, and the fact that the grotesque amounts of public debt have been augmented by loans from the IMF itself, in propping up all of these nations.  This is much in keeping with the failed policies that have threatened the world economy, but rather than re-think the strategy that has only deepened our troubles, Lagarde criticized nations that seek to shore up their own economies and financial markets, and while she didn’t name names, it’s clear that she’s talking primarily about the British.  She offered this:

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.”

Let me translated Lagarde’s lament:  Politicians in much of the world (excepting perhaps only the US) are beginning to heed the voices of their people, who are beginning to demand that their politicians begin to look out for their own nations first, before worrying about the sovereign debt crises of others.  So Britain, for instance, that is doing the smart thing and walking back its relations with the European Union and its failing currency is a bad country, while we in the US who continue to shovel dollars into the IMF via the Federal Reserve are “smart” and “thoughtful,” and the rest of that patronizing tripe that only works on liberals and statists.  Meanwhile, those of us who live in Realityville, USA, are beginning to understand that this crisis is largely the result of bad ideas promulgated by statists the likes of Christine Lagarde.

This announcement is an insult to every thinking person on the globe, and it show just how far these people will go in order to prop up a lousy idea, or a whole play-book full of them.  As if this wasn’t bad enough on its face, Lagarde offers still worse advice by way of a warning:

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.

In other words, these countries that have all seen burgeoning exports are now beginning to contract because general consumer demand is down in the importing nations, including the US and the EU. In short, Lagarde doesn’t want you to notice that she’s making an admission about the future prospect of the EU, with its currency in turmoil, and the US, where currency in large amounts has been sent to prop up this entire mess.  What she doesn’t say directly, and dares not admit, is that the coming collapse is already beginning in a more serious way, measured in the GDP of what had been the leading growth engines prior to the onset of the financial crisis.

In short, Lagarde is asking, or even chiding countries to continue a policy that is nothing short of suicidal, all on the basis of the proposal that the IMF be provided more money to loan to nations already deeply indebted. This is both the financial and moral equivalent of urging the family with twice their annual income in short term debt to apply for another credit card or two.  What she is pretending is that the situation can be repaired by some notion of restored confidence among investors and consumers who now [rightly] fear that nothing but collapse lays along this road.

They’re right to doubt, and the people of Britain and every other nation are right to worry as what Lagarde seems to be suggesting to European politicians, but indeed politicians everywhere, is that they should take one for the team, not as politicians, but as sovereign nations.  Britain would be right to reject her words as the ravings of a con artist, selling the same old Ponzi scheme again and again.  We in the US could only improve our position by following the British lead away from the EU, and the Euro, but our current financial and political leadership is instead tying us more closely to it.

It’s time to face reality:  The Euro was a doomed currency from the outset, and inviting in those nations with questionable currency and dishonest fiscal policies was never going to make anything but a disaster, but the people of Europe were suckered into it, and now the US is going along.  Their shrill warnings of dire collapses if we don’t go along are merely a postponement of a greater crisis with each subsequent delay.  It’s time to face the music, and as the old saying goes, we must refuse to put even more good money after bad.  So bad is it now that it would be more accurate to say that we are putting bad money after even worse.

The only way to prevent a global collapse is to cut our losses now. Stern fiscal policies must prevail, and money must grow tighter.  At this very moment, at the US Treasury and the Federal Reserve, they’re concocting plans to export your future wealth to Europe in order to buttress a currency that won’t be saved, and each dollar they pour into the effort only devalues the ones in your pockets.  It’s time to put a stop to all of this, and if we’re to save our country, we must start here, and we must start now, and short-run extensions of payroll tax-cuts won’t get it done.  We need real, drastic spending cuts that sharply curtail our budget deficit, something on the order of what Ron Paul is proposing, in the realm of one trillion dollars or more in spending cuts immediately.  If you want sound currency, it has to start at home, and whatever else you may think of Ron Paul, he’s right about this.

 

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  • http://alwaysonwatch2.blogspot.com/ Always On Watch

    Lagarde is a Leftist. As such, she is incapable of admitting that the Leftist policies of Europe over the past several decades are a consummate failure.

    "Protectionism" is a primary duty of a nation's obligation to look out for its own interests.

    Yes, the United States will be pouring more money down the drain in a futile attempt to shore up the Euro.

    • fred johnson

      Like George Soros said "A CONTROLED DECLINE" We are getting it ! My question is, why is it everyone in our system knows this but no one will even have the guts to even talk about it? Our entire system both parties are involved. The american citizen that has a job is now refered to as the (worker) WOW ! What more do we need to wake up? General Karl Rove the head of our republican gaurd, told us a long time ago that Romney was our man. but we keep pretending he will choose someone else. We are watching the clock tick down to the last 10-30 days and America as we have known it will be gone. what a shame. Perhaps with the new year we can welcome in agenda 21

  • Gail

    The first thing to eliminate is the funding of the UN…tell the UN to get out our country

    • dnr

      yes,we don't even have the guts to do that.

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  • Ron

    Hear is info on our caring BS Leader two faced at he. ****** General Electric is planning to move its 115-year-old X-ray division fromWaukesha, Wis., to Beijing.In addition to moving  the headquarters, the company will invest $2 billionin China and  train more than 65 engineers and create six research centers.This  is the same GE that made $5.1 billion in the United States last  year.but paid no taxes – the same company that employs more people  overseas thanit does in the united States.So let me get this straight. President Obama appointed GE CEO  Chairman JeffImmelt to head his commission on job creation (job czar). Immelt is supposedto help create jobs. I guess the  President forgot to tell him in whichcountry he was supposed to  be creating those jobs.If this doesn't show you the total lack of leadership of this  President, Idon't know what does.Soon, you all will understand that Obama has an agenda, this agenda is toremove the  last super power from the world. He is getting very  close.Please pass this information to others and think about it  before you buy aGE  product .http://www.wisn.com/r/28667254/detail.html
    Obama Sucks.

  • Ron

    Mitt Romney's and Russ Schriefer are wimps, they have to rely on drive by's to do there negative drive by attacks. The only difference I see comparing Romney and Obama is Romney has a reddish sunburn look or maybe its blush or he is blushing. I see no real difference in the two. Newt has more balls than the two combined. Romney and Obama are to preppy and boyish. Ron Paul is to old and to weird, he is being supported by fake republicans, most his supports have switched recently from Independent to Republican and from democrat to Republican. These supports know they will be helping Obumba in the 2012 election cause they know he really does suck. Come on iowa send a message to the GOP, they don't control your vote, support Newt.

  • Ron

    Wolf Blitzer acts like a high school dumb ass. He push's Newt to respond and when Newt counters attacks Romney and Paul, Wolf Pisser and others make Newt out to be the bad ass. The media really is liberal and they don't want Newt as Republican nominee, trust me they are part of the socialism and they highly support the Czars not Russian or Soviet but USA socialist Czars. Iowa, USA, Newt is the man of the hour, don't miss your chance to make a lasting positive change.

  • Ron

    If you support killing babies born or unborn and if you support liberal life styles as part of God's infinite plan then by all means support the liberal agenda and candidate. I support the scriptures of the Holy Bible, Gods Final Word to mankind. If you don,t believe in God then vote liberal. A foolish man says in his heart there is No God. Where do you stand, for God or Against God. I think it is your time to get off straddling the fence friend and you feel in your heart what is the right thing to do so do it. I am compelled to support Newt.

  • Ron

    Ok, the time is here, let's put the issues that America is being tormented with. Abortion, gay rights, gun ownership, enforce illegal alien laws etc. And vote with a popular vote by legal USA citizens. We are a Republic and the dumb asses in Washington suck and run there damn mouths and do nothing, that go for BHO dah big mahn, ya no dah big mahn. We the people will decide as our elected officials have there heads stuck up each others or there own. I think we pay them to much and we as a Republic should vote on what our leaders salary should be. They are not there to help us but rather there to help themselves and the bastards have and are right now sticking it to you and I. Hey anyone can run a business or country and go broke. We the people are pissed with performance of all you, what ever you are, it sure isn't representatives who give a rats ass about the working people, those who have a history of being self supporting. I feel like our elected leaders are on a higher scale welfare program and of course we get to pay for it. I voted for you elected officials to run this Country with rules and laws to guide you. I only see you playing a board game with our lively hood and I'm calling you out on it Now. What are you going to do.

  • Ron

    Hey people look up agenda 21

  • Ron

    Listen to David Yepsen, he made little sense and interjects his opinion as the position of the main stream American voters. I wonder if he is a suppoer of killing babies. Don't come back to iowa David and thank God for FOX news as nsnbc sucks, I wonder if they support baby killing.

  • Ron

    Wow this is shocking, Barak and Hilary No 1 most admired, ha, ha,ha, ha,ha, ha, ha I'm laughing my ass off. USA Today Poll should never be trusted. Hey dumb asses if that's true how come his, Obama's rating is so low. And Hilary, she was given her current job by Obama to keep her out of his way. She knuckled under to Obama and when she again runs for President and she will, do you really want to vote for someone who let another control her? USA has been hired to promote liberal agenda, Obama, Czars, not the Russian or soviet Czars.

  • SeanStLouis

    Incoherent ravings of a Newt supporter, indeed.

    I read Ron's comments, didn't really understand them, and didn't bother reading them again.

    Back to topic. We have two choices …to go the way of the EU or not.

    While the EU continues kicking their dead horse (sorry Mark) we sit back and complacently watch our government adhere to the same policies. Something's got to give, and soon.

  • Ron

    A couple come from New York came to Des Moines, she sung Santa Baby, talk about idiot's this gal win's 1st place. How did they get from New York to Des Moines Iowa? They came to help stir up some shit. Ok here is the scoop, they are a bunch of half ass hippies that can't follow there own issue's. They used fossil fuel to get to iowa and are using fossil fuel for heat where there meeting is being held. They drive old gas gulping clunkers. These duds are young and dumb and mostly bums. If they want to go green they can become Amish and just do it. hateful bitter lazy jealous ignorant. I heard them say Obama was with them and supports the riot style even though they say they are peaceful. I hope our police and officials are on top of this as lawsuits will be filled. China and Russia get ready to take over America if Obama and his nuts are allowed by the rest of us to get Hussein re-elected. Ed Fallon is a walnut with a big crack and a dried nut inside. I tell you its time to put a counter group together to confront these Acorns. These acorns are food for the liberal squirrels in Washington. Ok liberals let's all keep up the good work building a stronger China and Russia, good job libs, NOT

  • Ron

    Newt is not perfect, surprise, he is a caring man and has been under attack unfairly. I watched a pack of dogs turn on one of its own pack and kill it. I studied history and realized the human race can be the most vicious of Gods creation and that is because some have denounced the existence of God. I don't want an Atheist, agnostic, or Radical extremist. If you let Newt then stand up and defend a real conservative.

  • Ron

    Why doesn't C-Span, ABC. NBC. CBS, put controversial hard questions to the other candidates and Obama an Van Jones, do some digging on the Czars and Jones, Obama's appointment. I think you need to be fair and stop picking on Newt, pick on the others for awhile.

  • Ron

    A Hostile take over from with in has begun. The illegal's with fake identification, influx of minorities moving to high populated cities with the support and help of monthly welfare/assistance from our liberal Democrat socialist Supporters in government jobs allowing these law breaking actions. Their needs to be an investigation into abuse of tax money even Fraud and robbery of legal USA Americans. We now see after the conservative law abiding tea party we have the Obama/Socialist/hate/law breaking Occupy nuts and you know its so.
    This is how the Liberals will get into power, by using low IQ uneducated poor gullible naïve minority and feeble minded people. I think if you study The Rise of the Nazi party you will see how Rich, Educated Power Hunger people plotted a plan to take over Germany and bring them Change. You know the rest of the story. We need to get the word out or we will lose our heritage and fail our Forefathers and founders of the United States.

  • Ron

    Do you really care what the Hollywood Celebrities do politically. Hey they are paid to act and read and memorize a script. They have agenda's that benefit's the well being of self. You remember Aston's reply about Joe Paterno and had to recant the comment. These people are pro this pro that. They leave carbon foot prints as big a Obama's flying all over vacationing, how stupid are we. We are headed for King Queen and surf/peasant style Government under this current Liberal fade of an Administration.

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