quote:
In its latest World Economic Outlook, the IMF said China will face a possible investment boom-bust cycle if it fails to restrain its strong credit growth, as rapid investment could lead to overcapacity, falling profits and balance sheet problems in the corporate and financial sectors.--------------------------------------------------------------------------------
Translation:
Ahem.. ugh... will you yellow little gnomes cut it out?! Yea, yea, we needed you to make stuff for us cause our workers were getting unionized, uppity and wanted stuff like salaries but now its gone to your heads! Don't you slanted eyes forget who's the boss around here! We, the old white entitled billionaire farts are, and woe will come to you if you even start to think otherwise!
Finally I get read this—for now, just a quick answer. Well, I certainly would never look at the IMF as an example of anti-racism and multicultural respect.
But I think it's more than just bigotry that gets them uptight about this.
The fact is the IMF and World Bank have been grumbling about all the major economies over the last few years keeping interest rates very low, allowing for mass borrowing to spur economic activity.
I have read in different places that the US, EU, China, Russia and others (including Canada) have been warned by both the IMF and WB to jack interest rates to curb inflation.
SO far, these governments have been quietly telling them to shut up, since the low interest rates (currently at their lowest in 50 years) are about the only thing between the current economic situation and total recession.
Remember, the main purpose of the IMF and WB is to preserve the value and influence of money (and the dictatorial corporate cliques that have most of it) in the world. They do that by setting controlling regulations over global money supplies and pressure national governments to compliment these.
Now we're seeing an historic rift in the global corporate power structure as the biggest national economies, and those cliques that control them, are at odds with the global economic regulators that protect them, including the IMF, WB and even, on certain matters, the WTO.
China is borrowing money like crazy to stimulate its local economy by subsidizing business investment and consumer spending, as well as massive public project initiatives. That's what's worrying the IMF.
It is also worried, although isn't saying much publicly, about the massive US debt (both government, corporate and personal) and trade deficit, which is also approaching epic proportions.
I say let them sweat it. This unbearable global debt situation was created largely by the vicious austere policies of the IMF and World Bank over the last 25 years.
If the Third World continues to get poorer and eventually defaults on its debt, that could start a chain reaction of national bankruptcies around the globe, and even the big economies like the US and China won't be saved.
That will surely hurt us all. But then again, it just might make way for some serious democratic/socialistic economic overhauls that so many of us are working for.
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posted 14 September 2006 12:04 AM
