The International Monetary Fund (IMF) published a paper Wednesday that warned of dark, troubled economic times ahead when the world can expect to have less of everything except “social instability.”
It cautioned tighter government controls in a host of day-to-day areas will be needed including elevated taxation rates, trade restrictions, monetary tightening, and fiscal measures directed at wealthy economies addressing “climate change” to help redistribute wealth to “vulnerable” countries.
The paper, authored by IMF Managing Director Kristalina Georgieva, was released as G20 ministers and central bank governors gather in Bali, Indonesia, to chart the next 24-months of global financial performance.
Georgieva, a former CEO of the World Bank and European Union (E.U.) commissioner, outlined the first problem is rising inflation which delivers punitive taxation without legislation.
It cautioned tighter government controls in a host of day-to-day areas will be needed including elevated taxation rates, trade restrictions, monetary tightening, and fiscal measures directed at wealthy economies addressing “climate change” to help redistribute wealth to “vulnerable” countries.
The paper, authored by IMF Managing Director Kristalina Georgieva, was released as G20 ministers and central bank governors gather in Bali, Indonesia, to chart the next 24-months of global financial performance.
Georgieva, a former CEO of the World Bank and European Union (E.U.) commissioner, outlined the first problem is rising inflation which delivers punitive taxation without legislation.
She makes clear “Inflation is higher than expected and has broadened beyond food and energy prices. This has prompted major central banks to announce further monetary tightening—which is necessary but will weigh on the recovery. Continuing pandemic-related disruptions—especially in China—and renewed bottlenecks in global supply chains have hampered economic activity.”
It is going to be a tough 2022—and possibly an even tougher 2023, according to the Washington, DC, based organization with increased risk of recession on a global scale that will usher in an age of austerity and denial.
The way to strangle inflation is through tighter controls.
The IMF goes on to caution “Most central banks will need to continue to tighten monetary policy decisively. This is especially urgent where inflation expectations are starting to de-anchor.
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| A protester wearing a gas mask runs to throw a tear gas canister fired by army personnel during a protest amidst the ongoing economic crisis on July 13, 2022 in Colombo, Sri Lanka. (Abhishek Chinnappa/Getty Images) |
The I.M.F. sees a strong role for G20 nations in charting the world’s economic future, with a call for wealthy nations to help fund their needy neighbors. It urges:
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