The International Monetary Fund (IMF) is the latest organisation to confirm the global economy is weakening and is highly susceptible to adverse shocks.

The IMF warning comes only weeks after Royal Bank of Scotland and UBS told investors to dump equities and prepare for a global recession. In its latest report the IMF blames the slowdown in China and low oil prices for reasons to the recent slowdown.

The comments come a week before the G20 finance ministers and central bankers meet in Shanghai. The fund will argue that central bankers and governments need to act to stop the global economy falling into yet another recession. The problem is central bankers are running out of ammunition. They can print money and extend the money supply, but this will only push back the day of reckoning. If quantitative easing worked the Romans would have perfected it centuries ago. The only other option to extend the money supply is to implement negative rates in the hope consumers and business will extend their credit lines.

Mark Carney, the governor of the Bank of England is leading the way. In a striking dovish tone, Mr Carney said policymakers should be ready to cut interest rates if the UK economy weakens. These are desperate attempts to keep a financial system which relies on ever expanding credit, alive. Printing money and manipulating its value only makes the system more unstable.

The IMF will not admit the global financial system is fundamentally flawed so all we can expect is more extend and pretend.