So, naturally, they say “spend more”
World economic growth will struggle to accelerate this year as a U.S. expansion weakens, China’s economy levels off and Europe’s recession deepens, the International Monetary Fund said.
Global growth will be 3.1 percent this year, unchanged from the 2012 rate, and less than the 3.3 percent forecast in April, the Washington-based fund said today, trimming its prediction for this year a fifth consecutive time. The IMF reduced its 2013 projection for the U.S. to 1.7 percent growth from 1.9 percent in April, while next year’s outlook was trimmed to 2.7 percent from 3 percent initially reported in April.
“Downside risks to global growth prospects still dominate,” the IMF said in an update to its World Economic Outlook. It cited “the possibility of a longer growth slowdown in emerging market economies, especially given risks of lower potential growth, slowing credit, and possibly tighter financial conditions if the anticipated unwinding of monetary policy stimulus in the U.S. leads to sustained capital flow reversals.”
The fund urged central banks in wealthy nations facing low inflation and economic slack to keep injecting stimulus until recovery is entrenched, saying rising longer-term interest rates have hurt emerging markets the most. The developing economies need to be alert for financial risks if the “anticipated unwinding” of the U.S. Federal Reserve’s bond-buying program reverses capital flows, the IMF said.
And just what pray tell do they think that the result of rising interest rates will be on a US economy that now has trillions of dollars in new debt because of this insane stimulus?
Oh and exactly zippo in economic benefits to show for it?
This entire stimulus program has stimulated nothing except the growth of government and a truly unconscionable enslavement of our children to an unimaginably huge debt that they will derive zero benefit from; indeed, it will come to be their ruin.
Thanks to HotAir for the pointer to this.