International Monetary Fund

Doomed To Failure

In short, the U.S. economy may never reach “escape velocity” unless it is first allowed to crash.  It has been too larded up and larded over with debt for any real sustainable growth to take root.  More evidence, to this effect, was revealed this week.

IMF Chief Christine Lagarde Should Resign Immediately

Does being the Managing Director of the International Monetary Fund mean never having to say sorry? As Christine Lagarde blunders on from one mishap to another with apparent insouciance, it would appear so.

Frontrunning: October 6

  • Millions flee as Southeast U.S. braces for Hurricane Matthew (Reuters)
  • Hurricane Matthew Is a $15 Billion Threat Headed to Florida (BBG)
  • Three Risks to the Global Financial System as Debt Hits Record Levels (WSJ)
  • Deutsche Bank’s $14 Billion Scare (BBG)
  • Deutsche Bank Mismarked 37 Deals Like Paschi’s, Audit Says (BBG)
  • Monte Paschi Said to Plan Debt-Swap Deadline Before Italian Poll (BBG)

Preparing For A Resurgence Of Globalism

When the Brexit vote occurred, we suggested a dialogue would be created in mainstream media painting populism as responsible for numerous economic political and military difficulties. Gradually, globalism would be suggested as the remedy for populism. That process has begun and the IMF/World bank meetings are leading the way...

Frontrunning: October 5

  • ECB 'taper' talk hits stocks, sterling hits 31-year low (Reuters)
  • Crude Rises to Three-Month High After U.S. Stockpiles Plunge (BBG)
  • Gross Says He Shortened Duration on Europe After Taper News (BBG)
  • Chicago Fed's Evans 'fine' with December hike if data stays firm (Reuters)
  • Euro zone business growth at 21-month low in September (Reuters)
  • Deutsche Bank Brings Too-Big-to-Fail Quandary Home to Merkel (BBG)

IMF Slashes US GDP Growth Outlook: Now Sees US Growing Only 1.6% In 2016

Having observed consensus economic growth expectations for the US tumble month after month, in its latest World Economic Outlook, the IMF decided to once again play catch down from its over-optimistic +2.2% outlook in July to just 1.6% now  which still remains above consensus expectations of just 1.5% growth in 2016, pouring cold water on Obama's strategy to paint the economy as growing strongly.