The international financial watchdog earlier estimated the recent trade rows had already cost the world economy about $700 billion or an 0.8 percent slump in global GDP, outlining the data in a soon-to-be-published annual report by the IMF.
Chief of the International Monetary Fund Kristalina Georgieva has described the fearsome possibility of a repetition of the Great Depression, in light of today’s inequality and financial instability.
While taking the floor at the Peterson Institute of International Economics in Washington, she cited new IMF research that draws a line between the current economic state and the “roaring 1920s”, which climaxed with the 1929 market collapse, assuming grounds for the same trend are already there.
She took particular aim at the UK, lamenting that the inequality gap is on the rise within countries per se, while between them, the negative trend has been effectively rooted out over the past two decades.
“In the UK, for example, the top 10% now control nearly as much wealth as the bottom 50%. This situation is mirrored across much of the OECD (Organisation for Economic Co-operation and Development), where income and wealth inequality have reached, or are near, record highs”.
She warned that newly emerging issues like trade protectionism, environmental action, multi-way economic and telecom agreements mean the next decade will see nothing other than social unrest and stock market volatility.
“Excessive inequality hinders growth and … can fuel populism and political upheaval”, she summed up further drawing attention to the financial sector which, she complained, is always disregarded.
She brought up a new study in which the IMF set out China’s positive experience in expanding access to the financial sector there helped arrive at “enormous economic gains in the 2000s”, contending this helped scores of people to battle poverty.
As for the crisis of 2008, she ascertained that one in four young people in Europe as still trying to cope with its post-effects, and risk sliding into poverty.
According to Guardian-cited Eric LeCompte, the head of debt charity Jubilee USA, “the IMF delivered a stark message about the potential for another massive financial disaster”akin to the Wall Street crash and the Great Depression in the 1930s.
Fed Prints Money or Financial System Implodes
By Greg Hunter
Macroeconomic analyst Rob Kirby can sum up the massive Fed money printing it is doing each and every day. Kirby explains, “We are on a vertical curve where money has to be added to the system. . . . The Federal Reserve knew this would occur at some point 20 years ago. This is why they had to create a slush fund, which has grown into a very large pile of dung heap money. What’s being reported to us on a daily basis in terms of the ‘add’ from the repo activity is just the publicly acknowledged addition of money. The “missing” $21 trillion is in play, also, and it’s being added to the system to keep the system from crapping out and imploding. We are, without a doubt, on a vertical growth curve of money.”
To hide what is going, on the Fed is going to extraordinary measures to suppress the precious metals market to not allow growth in price that would reflect massive money printing globally. Kirby says, “The stench of criminality and collusion wafts over the COMEX now like a veil of evil. What they have turned our capital markets into with price suppression, so they can maintain the air of legitimacy and value to the dollar, is going off the charts.”
If money is being printed, aren’t interest rates going to spike? Kirby contends, “The reality is we should have had an interest rate spike already because there is no demand for increasing amounts of U.S. debt. With the amount of debt that is now outstanding, if interest rates were to spike, the first dead body would be the U.S. government itself. The U.S. government would not be able to fund itself, and the jig would be up on the dollar. We are told the dollar is strong, but the reality is the dollar is not strong at all.”
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