What’s the solution to Brexit? More spending on international trade. Because people are angry about globalism, the IMF has decided its member states need to spend more money counteracting the “globalist” backlash.
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.
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.
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...
The IMF sounded the alarm in its latest Fiscal Monitor report which revealed something disturbing: at 225 percent of world GDP, the global debt of the nonfinancial sector, comprising the general government, households, and nonfinancial firms, is currently at an all-time high of $152 trillion.
Typically, when we think about potential threats to the dollar, we think a different reserve currency might take over; or that foreigners might dump their dollar holdings... but there may be a much bigger elephant in the room...
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.