The Economy and the Un-Fixable Problems - September 10, 2011
As an Economist this gal is good but the IMF is too weak as are most all of the leaders of the G-7 Countries. They knew all this was coming and did nothing. Now it is at a crisis status and they will put their heads in the sand as they have for decades.
Christine Lagarde: "Strong fiscal consolidation is essential to restore debt sustainability"
International Monetary Fund chief Christine Lagarde has urged "bold action" on the faltering world economy, as the G7 group of leading economies met for talks in Marseille.
The G7 is discussing a "coordinated response" to the economic turmoil.
The two-day meeting comes as the Organisation for Economic Co-operation and Development (OECD) predicted a global slowdown this year.
Europe is also struggling with a sovereign debt crisis.
"The key message I wish to convey today [Friday] is that countries must act now - and act boldly - to steer their economies through this dangerous new phase of the recovery," Ms Lagarde said in London, before flying to the G7 meeting.
She also praised President Barack Obama's new $450bn (£282bn) jobs plan to try to boost the world's largest economy.
"All this is happening at a time when the scope for policy action is considerably narrower than when the crisis first erupted," she said. "But while the policy options may be fewer, there is a path to recovery."
Speaking at the same event in London before leaving for the G7 talks, Chancellor George Osborne vowed to stick to the UK's deficit reduction plan - which has so far helped the UK avoid the kind of bond market turmoil seen in the eurozone.
"It is the rock of stability on which our economy is built," he said.
The IMF chief praised the UK's plans - with several caveats.
"Since the summer, the outlook has become more subdued - including in the rest of Europe and the United States, the UK's major trading partners. So risk levels are rising," she said.
Steven H. Bauer, Ph.D.