Remember... When the IMF, the UN, or any country says everything is fine... PREPARE FOR THE OPPOSITE.
The gut reaction for politicians when they see a major problem coming is to make a public declaration that everything is fine. They know that if the public's opinion becomes fearful, the economy will go into a death spiral. The more and more you hear good news coming from politicians about the economy, the more you need to keep preparing...
WASHINGTON (AP) — International Monetary Fund chief Christine Lagarde said Thursday that the threat of financial collapse in the global economy appears to have eased. But she warned that developed economies still need to follow through on financial reforms and debt reduction.
"We stopped the collapse. We should avoid the relapse. And it's not time to relax," she told a news conference on her outlook for 2013.
Lagarde said that big economic powers, including the United States and European countries, had taken important steps to shore up their financial systems but have a lot of work left to do. She warned that there are signs of a waning commitment to regulate the financial sector, despite the severe problems that began with the collapse of U.S. financial institutions in 2008. She said that reforms have been delayed and diluted, and she worries that banks are pushing back against necessary reforms.
On the United States, where President Barack Obama is locked in a standoff with congressional Republicans on how to lower the country's deficits, Lagarde said any cuts should be aimed at allowing time for an economic recovery to play out.
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