Excerpts From Executive Statements At The IMF/World Bank Meeting

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Today has been a busy day for central planners around the world: the IMF and the World Bank are holding their spring meetings which has resulted in an avalanche of Bloomberg excerpts. Courtesy of Reuters, here is a full summary of the key statements by various high level officials. As usual anything that is being denied is about to hit us head on. Of particular note are the statements by TeflonTurboTaxTim Geithner.

IMF MANAGING DIRECTOR DOMINIQUE STRAUSS-KAHN ON INCLUSIVE GROWTH

"Don't rely only on the idea that growth will be enough, we need more
than growth. We need active (labor market) policies ... The risk if we
don't do this, is to have growth which will not be fair growth, not
inclusive growth."

"We have to work for the sustainability of
growth ... Recent events in your countries and other countries show that
when growth is not inclusive enough then it is a threat to the
sustainability of growth."

STRAUSS-KAHN ON AFRICA

"The
good thing about this recovery is that growth in Africa is picking up
more rapidly than after former crises when there have been long delays
before Africa picks up."

STRAUSS-KAHN ON WHETHER IT HIS LAST TIME PRESIDING OVER AN IMF MEETING?

"The question ... is irrelevant."

STRAUSS-KAHN ON CAPITAL CONTROLS

"For decades, this institution has said capital controls are just evil,
we don't want it, we are fighting against it, and each and every
country putting in place capital controls will be bashed by the IMF."

"We are taking a more pragmatic view now and saying it depends a lot and saying sometimes it may be useful..."

"From the point of view of the institution, yesterday capital controls
were not in the tool box but today capital controls are in the tool
box."

STRAUSS-KAHN ON GREECE

"I do (believe Greece can make it)... I understand how painful it is for the Greek people but I think Greece will make it.

"Greece will make it provided two things: first, that all areas of the program are really implemented in due time...

"Some part of what has been done is not working as well as we
expected. For instance, the richest people in the country are still not
paying the taxes they would pay in any other European country.

Second, what the Europeans have committed to do has to be done
too...There is the need of a more comprehensive plan from the European
side. The piecemeal approach dealing with one day interest rates,
another day something else is not working well ... and we are still
waiting for this to show up."

STRAUSS-KAHN ON CRISIS

"We
are still in a crisis, and the consequences of this crisis are still
very strong, not only in Europe but importantly in Europe.

"The
apex of the crisis is behind us but it would be part of the complacency I
am trying to avoid to believe we are in a post crisis era."

"We are still in a crisis and I think from many points of view we are still at the center."

STRAUSS-KAHN ON THE NEED FOR MORE JOBS

"Why do I say it's not the recovery we want? ... Not only because of
(global) imbalances. You may remember exactly one year ago my concern
was we may have a recovery without jobs ...

"It's too much to say
its a jobless recovery but it's certainly a recovery without enough
jobs ... There will be a lot of challenges to deal with, especially
because of youth unemployment."

"The challenge is clear: it's to preserve social cohesion without undermining macroeconomic stability.

"To do all this we need more international cooperation."

WORLD BANK'S ZOELLICK ON WORLD BANK ASSISTANCE FOR EGYPT

"We have discussions with the Egyptian authorities. We haven't yet
reached an understanding about the types of support that could be most
helpful.

"The Egyptian authorities are also discussing the
overall situation with the IMF, so those will be some of the discussions
going on over the week.

"The early indications are that given
the drop in the tourism industry and some of the other (sectors), there
are going to be some budget challenges to be addressed."

ZOELLICK ON AID FOR IVORY COAST

"Ivory Coast needs security, jobs, and justice. Working with regional
partners, the World Bank stands ready to offer important assistance --
financial, policy and technical.

"If the security situation
allows we can within the next couple of week reactivate some World bank
programs worth about $100 million to help the people in Ivory Coast."

U.S. TREASURY SECRETARY GEITHNER ON POSSIBILITY REPUBLICANS MIGHT NOT VOTE TO RAISE DEBT CEILING

"It will be deeply irresponsible to do it. People will advocate it up
there. They will say there's leverage in it, we can advance it. But that
would be deeply irresponsible and they will own the risk. It won't
happen in the end, but if they take it too close to the edge, they will
own responsibility for that miscalculation."

GEITHNER ON CONFIDENCE IN RECOVERY

"Despite the risks in oil, despite the financial challenges still
facing parts of europe, despite what's happened in Japan, the tragedy in
Japan, despite the headwinds that those create for recovery, what you
see is gradual healing, gradual strengthening in confidence that the
world economy is going to be growing at a reasonable rate. Of course we
want to make sure we sustain that, but as that happens, what you see is
the encouraging signs of people just being willing to go out and invest
again. Employment growth is increasing, people are taking more risk
again."

GEITHNER ON MARKET CONFIDENCE IN U.S. DEBT

"You
also see a lot of confidence in markets that the American political
system will be able to get our fiscal path on a sustainable position. If
you look at what we pay to borrow, the world basically believes that
our problems are manageable, our system will solve it, but you want to
make sure that we're earning that confidence every day. We have to act
to justify that, to sustain that."

GEITHNER ON REDUCING U.S. DEFICIT

"We've got very different ideas on how to do this, what the right thing
to do for the economy is. But the important thing (is) when you have
the president of the United States and the Republican leadership in
Congress both embracing the same basic target for deficit reduction,
roughly 4 trillion (dollars) over 12 years, so that our deficits fall
below 3 percent of GDP ... you've made the fundamental shift. That's
very important. It makes it very hard for future presidents, future
Congresses to decide that you can live with the risk of higher deficits
in the future."

GEITHNER ON VOTE TO RAISE DEBT CEILING

"They will do it.

"They understand that you can't take any risk the world starts to think
the United States won't meet its obligations. There's no conceivable
way that this city, this government can court that basic risk. It would
be deeply irresponsible to do that and you can't take it too close to
the edge.

"And you know, I sat with the president and the
leadership of both houses, both parties yesterday morning and the
Republican leaders say in private what they say in public, which is to
say 'of course we recognize we have to pass the debt limit, of course we
recognize that America will meet its obligation.

"But we also
want once again to take advantage of this moment to try in a sense to
lock everybody in to what you call in many parts of the world a fiscal
rule, a constraint, that over a period of many years will bring our
fiscal position down to a sustainable level."