IMF Lackey Warns of Pulling Out Too Early
International Monetary Fund Managing Director Dominique Strauss-Kahn said it’s too early for policy makers to withdraw stimulus that’s driving the global recovery.
“The global economy is recovering, even if its recovery is fragile,” Strauss-Kahn said in a speech at Tokyo University in Japan’s capital today. A plan to withdraw emergency measures “should be designed today” yet not “implemented” because world economies are still dependent on government support and private demand remains weak, he said.
Strauss-Kahn had said earlier this month that the world’s economic recovery is occurring “sooner and stronger” than anticipated. More than $2 trillion in government spending around the world has spurred growth, pulling economies out of a recession spurred by a meltdown in the U.S. housing market.
Government measures “should be focused more on what is likely to fight unemployment,” he said today.
Strauss-Kahn said countries haven’t done enough to tighten regulation in the wake of the global financial crisis.
“The root of the crisis” was “a failing of regulation and supervision of the financial sector in the U.S,” he said. “A lot has already been done, but it’s not enough.”
He urged nations to consider having companies in the financial sector financially help solve the problems they created. U.S. President Barack Obama’s proposed levy on the country’s banks is “very welcome” and “a good idea,” Strauss-Kahn said.
Like I said yesterday, careful what you wish for because you just might get it. Especially when it comes to following suggestions made by diabolical pricks like this guy.
Does Mr Strauss-Kahn understand something we don't? Perhaps that the global economy is addicted to the government stimulus crack and will be unable to kick the habit once central banks around the world pull the plug?
Good luck with that.