MercoPress. South Atlantic News Agency
IMF calls for fiscal austerity in South America but admits “dilemmas”
IMF warned inflation is threatening South America but also admitted countries had a dilemma since increasing interest rates could further worsen the appreciation of local currencies vis-à-vis the US dollar. Read full article
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Disclaimer & comment rules““So we have different dilemmas when attempting to contain the surge”, and this requires a global balancing act, which means leading countries such as China should prop domestic demand while softening their aggressive export model.”
Feb 12th, 2011 - 08:53 am - Link - Report abuse 0Curious how IMF manifestations always happen to coincide in scope with the US agenda. China has its own problems with inflation. If it decided to spur domestic consumption at the expense of exports, inflation would become an even greater problem to that country. It's weird how the IMF can bald-facedly exhort a country to take steps that go against its own best interests.
The commodities bubble is none of China's fault. Even semi-stagnated countries that don't export much of anything to China - eg, the UK - have been struggling with food inflation. This is so because the spike in food prices has been provoked by excessive liquity in capital markets, something that resulted from US quantitative easings and interest rates cuts in developed markets. If anyone is to blame for high commodity prices, it is those countries, especially the US. But of course, an IMF pussy would never dare saying that.
The poor judgment of this man is further shown in the fact that he says LatAm economies are “clearly” over-heated. It wasn't even a week ago, however, that official data released by Brazil - a country that has also been struggling with inflation - showed its industrial output fell sharply in December: a sign that its economy is not overheated, that there's no demand inflation, and that any inflation is the result of external liquity.
#1 I think you are over analizing it, it all boils down to food shortages, over population and lack of resources, if you also add global warming and the negative effects on farming and yeld you might be on a better track to figure out the reasons for inflation. Egypt and Tunisia had a food shortage problem as well, but IMF as you pointed out has ulterior interests vested in priviledged members, mind you the voting members are the country who put the money to finance the many programs.
Feb 13th, 2011 - 07:58 am - Link - Report abuse 0http://www.thesundayleader.lk/2011/02/13/food-shortage-and-inflation-a-world-crisis/
http://www.thesundayleader.lk/2011/02/13/food-shortage-and-inflation-a-world-crisis/
http://www.thesundayleader.lk/2011/02/13/food-shortage-and-inflation-a-world-crisis/
As if IMF had any credibility with the working class, IMF is till the same old mouth piece of the elite.
http://www.thesundayleader.lk/2011/02/13/food-shortage-and-inflation-a-world-crisis/
http://english.caiijing.com.cn/2011-02-10/110637794.html
Feb 13th, 2011 - 02:41 pm - Link - Report abuse 0Commenting for this story is now closed.
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