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Imf Chief Dominique Strauss-Kahn Warns Global Economic Co-Operation Is Falling Apart

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http://www.telegraph.co.uk/finance/economics/8048996/IMF-chief-Dominique-Strauss-Kahn-warns-global-economic-co-operation-is-falling-apart.html

Global economic co-operation is falling apart, threatening the "fragile" recovery, Dominique Strauss-Kahn, the head of the International Monetary Fund, has warned.

Currency wars, trade barriers and other protectionist policies are rising to the top of domestic political agendas as governments across the world struggle to resurrect economic growth.

After the early united front to stem the global collapse in 2008, "the momentum [of economic co-operation] is decreasing", Dominique Strauss-Kahn said at the IMF's annual conference in Washington.

"That is a real threat. Many do consider their currency a weapon. That is not good for the global economy… There is no domestic solution to a global crisis."

His concerns were echoed by Robert Zoellick, President of the World Bank, who warned that failure to co-operate would risk plunging the world economy into depression. He said: "If one let's this slide into protectionism, we run the risk of the mistakes of the 1930s."

The issue broke into the open on Wednesday when US Treasury Secretary Tim Geithner said called for "more progress by the major emerging economies to more flexible, more market-oriented exchange rate systems. This is particularly important for those countries whose currencies are significantly undervalued."

His veiled attack on China came as Wen Jiabao, the Chinese Premier, defended his policy of slow appreciation in the yuan and told EU leaders to stop bullying China. He warned that a more rapid appreciation could lead to social turmoil.

China is pushing for a bigger role within the IMF but Mr Strauss-Kahn suggested currency concessions would be needed. "If you want to be at the centre, it goes with having more responsibility on what you do and the consequences of what you do in the global economy," he said.

All for one and one for all.....

Fook that it's everyman for himself.

Still I bet it's all contained and once the recovery really takes off all this looking after the national interest will stop...

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Guest UK Debt Slave

Don't worry folks

Strauss-Kahn may be leaving his post at the IMF to fight Sarkozy in the French presidential elections.

Apparently, Gordon Brown might have a shot at getting the top job at the IMF

Nobody is better qualified to save the global financial system!

If that doesn't give you nightmares, nothing will.

http://blogs.telegraph.co.uk/finance/jeremywarner/100008045/could-brown-be-in-with-a-shot-for-top-imf-job/

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China have been co-operating for years by reluctantly accepting every job and production technology that a short-sighted bunch of spivs were willing to hand them, fully backed by their governments and moentary policy.

Was never going to end well.

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Don't worry folks

Strauss-Kahn may be leaving his post at the IMF to fight Sarkozy in the French presidential elections.

Apparently, Gordon Brown might have a shot at getting the top job at the IMF

Nobody is better qualified to save the global financial system!

If that doesn't give you nightmares, nothing will.

http://blogs.telegraph.co.uk/finance/jeremywarner/100008045/could-brown-be-in-with-a-shot-for-top-imf-job/

At least with Brown in charge we would know what the eventual outcome would be.

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Don't worry folks

Strauss-Kahn may be leaving his post at the IMF to fight Sarkozy in the French presidential elections.

Apparently, Gordon Brown might have a shot at getting the top job at the IMF

Nobody is better qualified to save the global financial system!

If that doesn't give you nightmares, nothing will.

http://blogs.telegraph.co.uk/finance/jeremywarner/100008045/could-brown-be-in-with-a-shot-for-top-imf-job/

Couldn't think of a better person to lead the International Morons Federation.

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The IMF does think it's a good idea to tax bankers and regulating banks, though.

The International Monetary Fund demanded new bank taxes and tougher financial supervision today warning that a return of "business as usual" risked sowing the seeds of the next crisis.

Dominique Strauss-Kahn, the IMF's managing director, said two new taxes on banks were needed to provide an insurance fund for future financial meltdowns and to curb excessive risktaking.

His remarks coincided with comments by the EU tax commissioner Algirdas Šemeta, who said the financial sector was "undertaxed". He outlined an idea to tax profits and remuneration that could raise €25bn (£22bn) across the EU's 27 states if set at 5% of banks' profits and wages.

His proposal is separate to George Osborne's plan to tax banks' balance sheets – raising about £2bn a year – although the Treasury said last night that it intended to hold "further discussions with its EU partners about the benefits of a financial activities tax on certain profits and remuneration". The EU has also considered a financial transactions tax (FTT) on stocks, bonds or foreign currency but said it would only work if applied globally.

Speaking in Washington, Strauss-Kahn slapped down the idea for such a wide-ranging financial transactions tax. At a press conference ahead of this weekend's annual meeting of the Fund, he said the "Robin Hood tax" was not the right way to tackle speculation. Instead, the IMF favours a bank levy and a financial activities tax on the sector's profits and pay.

"Yes, we believe a tax on the financial sector is useful," Strauss-Kahn said. "But, no, we don't believe the FTT is the best way to do it."

He said taxation should be used with regulation and supervision to tackle the problems exposed by the crisis of recent years. But the fund did not see an FTT as the best way to address reckless behaviour by banks because it was "a bad proxy for speculation that you want to address."

Strauss-Kahn said the IMF was worried about banks returning to old ways of doing business. "It is not the right way to go back to business as usual, and there is a risk … despite the efforts which have been made to enhance and adapt supervision."

Failure to find a global approach to supervision would result in different systems around the world, he said. "That is an important risk because loopholes in the system are the seeds for the next crisis.

"The IMF has been repeatedly insisting since the beginning of the crisis that to repair the financial sector we need to do a lot on regulation but we also need to do a lot on supervision and crisis resolution … it would be unfair to say nothing has been done but very little has been done."

In proposing an EU-wide tax on bank profits and pay, the commission gave few clues about how the money collected should be handled. Osborne argues that any funds should be put to general use while other finance ministers have argued that the proceeds could be used as a type of bailout fund for the next bank failures.

http://www.guardian.co.uk/business/2010/oct/07/imf-strausskahn-banks-crisis-warning

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Couldn't think of a better person to lead the International Morons Federation.

Be funny if the Cameroons have to call in the IMF ...led the by guy that caused the crisis in the first place!

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Be funny if the Cameroons have to call in the IMF ...led the by guy that caused the crisis in the first place!

Yes it would be the ultimate irony.

I highly doubt Brown would end up at the IMF as head, surely they wouldn't be that stupid.

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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