Excerpts From Executive Statements At The IMF/World Bank Meeting

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."

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