Lawrence York

International Monetary Fund Head on Europe and Stagflation

A lot of lip service by a bureaucrat I think and unfortunately the kind of reform needed will be a developed - emerging growth battle resulting in a less than optimum outcome. Indeed we have reached the time to consider whether financial solvency and/or amount of debt should not be considered as regulatory elements in trade and international relations among countries by a world governing body. For example, would a great debtor and/or insolvent nation who must externally finance its massive debt be more inclined to advocate peace, stability, and growth in their international relations or chaos, fear, and instability? For surely the former would drastically increase their debt service and perhaps make it impossible to service their debt? I think you can see that OECD member countries may sharply diverge on agreement to resolve such a matter that undeniably is in their long term common interests but involves punitive actions targeted at those who have more clout.