IMF: U.S. must tackle 'fiscal cliff' to stem global slowdown

International Monetary Fund economic counselor and research director Olivier Blanchard announces the world economic outlook at a press conference in Tokyo on October 9, 2012.

The International Monetary Fund says economic growth is slowing down sharply and that even the U.S. recovery is at risk. The IMF says the world economy will only expand at a rate of 3.3 percent this year -- which is three tenths of a percent lower than previously thought.

Stagnation in the euro zone, the fragile recovery in the U.S., and the slowdown of emerging economies, such as China, India, and Brazil, are all coinciding at once to contribute the bleak global growth outlook, despite proactive central bank policies around the world.

"Even after very strong actions by central banks -- the U.S. Federal Reserve, the European Central Bank, the Bank of Japan -- the job is not done," says Marie Diron, chief economist at Ernst & Young, "the key word in the IMF report today is 'uncertainty'."

In the euro zone, the IMF blames government for uncertainty because leaders have failed to solve the debt crises and may have made matters worse with austerity. In the U.S., the IMF is calling on congress to tackle the upcoming 'fiscal cliff' that will take effect at the start of next year.

About the author

Stephen Beard is the European bureau chief and provides daily coverage of Europe’s business and economic developments for the entire Marketplace portfolio.
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Last night, at a seminar at the London School of Economics, I asked Professor Ha-Joon Chang, world renowned economist, if he could name a time in history when austerity measures ever led to prosperity. He said no.


It appears to me that we already have enough goods and services to go around. We should be thankful and enjoy. The need to earn the right to goods and services has past.

From my page at truthlove.blogspot.com:

If we give a man a fish, we teach him to give us chips; if we teach a man to charge people for fish, we teach him to charge us for chips and to compete with us at the fish market.

We trust in profit in our pursuit of goods or services even though it is a more efficient system to receive and give without pursuing payment, and purchasing goods and services is akin to purchasing slaves if the producers and servers are forced to pursue payment.

The following are some additional reasons to abandon the profit motive to sanction the love motive:
• production and service would be void of ulterior motives and shame,
• no need for money, taxes or insurance,
• more freedom because (1) pursuing, processing and protecting money would not be needed, (2) former profiteers, money processors and money protectors could either help with production and service or take a break and (3) no need to sell our future for credit,
• less risk with existing and new enterprises,
• no squabbles over money,
• fewer shortages, interferences, injuries and deaths from unnecessary activity,
• less annoyance from beggars,
• less annoyance, manipulation, preaching, embellishment and temptation from advertisers,
• no need to purchase representation,
• more progress thru sharing our knowledge and talents,
• less fear of thieves and of losing our wealth and
• no need to accumulate and hoard money for family, disasters or retirement.

Instead of serving an economic system that forces us to pursue payment instead of do unconditional love, we need to bless everyone with the economic system that receives from and gives to a people who forsake that transgressive and imperfect system for the sake of all.

Imagine we agree to abolish money and offer our goods and services for free; would you
• contribute with your present job,
• contribute with a different job,
• contribute with a new enterprise or
• not contribute?

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