IMF warns global economy is stalling
Duncan Richardson, News Editor
28 Sep 2016, 10:32 a.m.
The International Monetary fund (IMF) has warned urgent action is needed to halt the decline in global trade. The rise of protectionism and anemic growth has led to a rise in unemployment and a slowdown in global trade
The warning comes as the World Trade Organisation (WTO) reduced their growth forecasts and called for policymakers to wake up before it’s too late.
It appears history is repeating, following the stock market crash and depression of the 1920’s countries pulled up the drawbridge to global trade. Politicians embraced these policies to appease domestic voters, but ultimately they hindered economic growth and in part led to World War II.
The global economy is fracturing and according to the former Geek finance minister, Yanis Varoufakis, the European Union is on the cusp of splitting. He warned the monetary union is “utterly unsustainable” and a split is inevitable.
It appears we reaching an important reflation point, were governments and bankers can no longer cover up the imbalances caused by an out of control fiat based monetary system.