Christine Lagarde: World Economy In 'A Dangerous Situation'

PARIS (Reuters) - The head of the International Monetary Fund said the world economy was in danger and urged Europeans to speak with one voice on a debt crisis that has rattled the global financial system.

In Nigeria last week, IMF Christine Lagarde said the IMF's 4 percent growth forecast for the world economy in 2012 could be revised downward, but gave no new figure.

"The world economy is in a dangerous situation," she told France's Journal du Dimanche in an interview published on Sunday.

The debt crisis, which continues into 2012 after a European Union summit on December 9 only temporarily calmed markets, "is a crisis of confidence in public debt and in the solidity of the financial system," she said.

European leaders drafted a new treaty for deeper economic integration in the euro zone, but it is not certain that the accord will stem the debt crisis, which began in Greece in 2009, and now threatens France and even economic powerhouse Germany.

"The December 9 summit wasn't detailed enough on financial terms and too complicated on fundamental principles," said Lagarde.

"It would be useful for Europeans to speak with a single voice and announce a simple and detailed timetable," she said. "Investors are waiting for it. Grand principles don't impress."

Part of the problem, she said, has been national calls for protectionism, making it "difficult to put in place international coalition strategies against it."

Lagarde added: "National parliaments grumble at using public money or the guarantee of their state to support other countries. Protectionism is in the debate, and everyone for themselves is winning ground."

She did not specify which countries she was referring to.

Emerging countries, which had been growth engines for the world economy before the crisis, have also been affected, said Lagarde, citing China, Brazil and Russia.

"These countries, which were the engines, will suffer from instability factors," she told the newspaper.

(Reporting by Alexandria Sage; Editing by Alistair Lyon)

Copyright 2011 Thomson Reuters. Click for Restrictions.

Comments

[robert horwitz]

10:30 AM on 12/29/2011

OK Christine here is the plan. We call all the heads of the Big Movie Studios around the World together and create an International Visual scenario in the form of the movie (Independence Day). You remember. That's where Gazillions of angry Aliens from Outer Space attack and try to destroy every living Human Being on this Planet sort of like our Republican Party. Everyone will be so scared out of their pants not only will they come together but they will for the first time work together and we will finally be able to solve this International Financial mess.

[Foxyknoxy]

08:26 AM on 12/29/2011

Why is she so orange? she must tan @ the same place that Boehner tans...

[TheAngryGrapes]

02:11 AM on 12/29/2011

Duh

[tin soldier]

06:09 PM on 12/28/2011

There are two ways to Enslave a nation.
One is by the sword,the other is by debt
John Adams 1826

[Ryszard Ewiak]

04:47 PM on 12/28/2011

What will be the finale of this crisis? The Book of Daniel says: "And [the king of the north = Russia] will go back (to) his land with great wealth [1945]; and his heart (will be) against the holy covenant [state atheism]; and will act [this means activity in the international arena]; and turned back to his own land [1991-1993. The collapse of the Soviet Union and the Warsaw Pact. Russian troops returned to their country]. At the appointed time [he] will return back." (11:28, 29a) At the appointed time Russia will return back. It also means the economic and political earthquake; the disintegration not only of the euro area, but also of the European Union and NATO. Then many countries of the former Eastern bloc will return to the Russian sphere of influence. Russian troops will be stationed here again.

What will happen next? "And will enter into the south [Georgia], but it will not be as the former [1921] or as the latter [2008], for the dwellers of coastlands of Kittim [the West] will come against him, and he will be dejected, and will go back." (Daniel 11:29b, 30a)

Moses writes: "But ships from the direction of Kittim [US Navy], and troubling Asshur [Russia] and troubling Eber [remaining enemies, including Iran]." (Numbers 24:24a)

It will be a nuclear war. (Revelation 6:4) "A great sword" = a nuclear sword. As Jesus foretold, it will be "the beginning of birth pains". (Mathew 24:7, 8)

[StopMakingSense2]

02:59 PM on 12/28/2011

So in other words croney capitalism has failed! You were just pawns on the chess board to be sacrificed in the grand plutocratic game!

[carolineeaton]

03:41 AM on 12/28/2011

I think we've already figured that out Ms. LaGarde, although I can see it is just becoming a reality for you.

[newleaf]

12:07 AM on 12/28/2011

I think this is the woman for John Boehner......what a skin tone!

[rotorhead1871]

09:57 PM on 12/27/2011

Christine Lagarde: World Economy In 'A Dangerous Situation'......actually its HER economy in a dangerous situation...

[StopMakingSense2]

03:01 PM on 12/28/2011

So you never look out your own window? Yes denial is just a river in Africa...

[rotorhead1871]

03:30 PM on 12/28/2011

I like rivers

[rotorhead1871]

09:55 PM on 12/27/2011

where does she get her spray tan??

[iam99]

03:23 PM on 12/28/2011

Looks like Pam.

[rotorhead1871]

03:30 PM on 12/28/2011

ROFL.....

[rickroland]

09:41 PM on 12/27/2011

Why, of course, Christine, the world economy is in a "dangerous situation" because of what your organization and similar ones have been doing through the manipulation of the values of currency and other shenanigans, like operating "money is debt upon creation" scams for years and years now.

The only way to handle this "dangerous situation" that the IMF, Federal Reserve, and others have created is to completely dismantle your organizations. Yeah, I know, the truth hurts, but you'll get over it.

[cookiemonsta]

06:24 PM on 12/27/2011

Those who believe in printing unsecured money and passing it around a circle is a good way to create a stable economy say "I".

[sysmgr]

11:57 AM on 12/27/2011

We are on a path to global governance. A key factor to that success is centralized control of money. The scare tactics employed by the IMF et al is the strategy for achieving that goal. The world economies are being manipulated. The US taxpayer maybe on the hook for 200 billion in IMF rescue funds. It is widely believed that the bailout of 2008 was unnecessary. Massive cash reserves were available to banks. Weak economies like Greece, Portugal and Spain will have no effect on the US in they tank. Who can we elect to take back control of our sovereignty?

[becky bradshaw]

10:51 PM on 12/27/2011

You should contact Goldman Sachs CEO Lloyd Blankfein. Europe reports to his subordinates, but he can help you. Lloyd's office is at 200 West Street in NYC.

[MrSarcasm]

11:51 AM on 12/27/2011

but nobody mention that the only reason the "World Economy" or any economy is in danger due to the very principle of "credit"...

[rickroland]

09:42 PM on 12/27/2011

Actually, it is "money is debt upon creation" that is the problem.

[Rubinwitz12]

08:24 AM on 12/27/2011

She looks like a French fashion mogul