The IMF is plugging Keynesian economic nonsense today in the wake of a huge and unexpected plunge in Chinese exports.
The Financial Times reports IMF Warning as China Exports Plunge.
The world faces a growing “risk of economic derailment” and needs immediate action to boost demand, the International Monetary Fund warned on Tuesday as new figures pointed to the worst monthly collapse in Chinese exports since 2009.
Speaking in Washington, David Lipton, the IMF’s influential second-in-command, warned that the global economy was “clearly at a delicate juncture”. Urgent action was needed by policymakers around the world to respond to slowing growth and fresh threats posed by turmoil in commodity and financial markets, he added.
“Now is the time to decisively support economic activity and put the global economy on a sounder footing,” he told the National Association of Business Economics.
Among the “most disconcerting” signs of trouble in the world economy were “a sharp retrenchment in global capital and trade flows” over the past year, he said.
In dollar terms China’s exports fell 25.4 per cent in February from a year earlier, the worst one-month decline since early 2009 and down from an 11.2 per cent drop in January. Imports fell 13.8 per cent, trimming losses after an 18.8 per cent fall in January.
The IMF is growing increasingly concerned about the state of the global economy because of what it sees as signs of a further slowdown. It has already said it is likely to lower its 3.4 per cent growth forecast for this year when it issues its next round of predictions in April.
“Sorry guys, we blew our economic forecast for the 20th consecutive time.
But you can help. Here’s how:
Spend! Spend! Spend!
We need growth for growth’s sake. No price is too high to pay.
Buy things you don’t need. Go deeper in debt with no way to pay it back.
Don’t worry about tomorrow; the future is today.”
That is today’s idiotic message from the IMF where economic idiocy is the norm.
Mike “Mish” Shedlock