In true alarmist form, the world’s biggest lending institution declared that the world economy will submerge to ‘below zero.’ “The world economy will probably shrink ‘below zero’ this year, in what many now refer to as the “Great Recession,” said the managing director of the International Monetary Fund (IMF), Dominique Strauss-Kahn.
Actually, what the agency meant was for the least developed countries to hit the nadir. It’s not as if the world’s poorest countries are any better than ‘zero’ for the longest time. That is why the IMF is encouraging aid givers and donors to give more to the poorest countries such as those in sub-Saharan Africa. It is open secret, of curse, as to what agency facilitates this aid-cum-loan to impoverished countries.
He noted that the crisis threatens to undo the economic and social success in Africa that took place in the last decade, and that millions of people will return to poverty. When did they ever leave it?
The IMF director also said that global growth will have the worst performance that we can remember in our lives. Actually, again, what he must be referring to are the least developed countries.
“This is not just about protecting the economic growth and household incomes, it is also to contain the threat of civil unrest, maybe even war. It is for the people and their future,” said Strauss-Kahn.
The IMF gives an analysis that many know by now: the continuing problem of global financial institutions, combined with the collapse of consumer and business confidence, is depressing domestic demand worldwide. World trade is dropping at an alarming rate and raw material prices have collapsed.
Via Addis Fortune
