XIAM007

Making Unique Observations in a Very Cluttered World

Monday 23 January 2012

IMF chief Lagarde warns world faces an economic spiral like the 1930s unless action is taken on the eurozone crisis -

IMF chief Lagarde warns world faces an economic spiral like the 1930s unless action is taken on the eurozone crisis - 




Ms Lagarde, speaking in Berlin, warned of a danger of rising unemployment if governments did not act together.


She said the Fund needed 500bn euros more to help sustain those countries worst hit by the eurozone crisis.


She added that Germany's economy depended on the economic health of its customers in other eurozone countries.


Ms Lagarde, who met German Chancellor Angela Merkel, said that the eurozone needed a "larger firewall" to prevent the debt crisis spreading.


'Downward spiral'
Talks between Greece and its creditors were adjourned on Friday amid Greek hopes a large chunk of its debts could be written off.


In a BBC interview, Ms Lagarde said now was the time to act in order to avoid a 1930s-style depression.


She said: "Looking at it from this perspective, 2012 must be a year of healing. But as Hippocrates put it long ago: 'Healing is a matter of time, but it is sometimes also a matter of opportunity.'


"And today, it has to be an opportunity of our own making. Otherwise, we could easily slide into a 1930s moment.


"A moment where trust and co-operation break down and countries turn inward. A moment, ultimately, leading to a downward spiral that could engulf the entire world."


Read more -
http://www.bbc.co.uk/news/business-16689211

United Welfare States of America: In 2011 Nearly Half The Population Received Some Form Of Government Benefit -

United Welfare States of America: In 2011 Nearly Half The Population Received Some Form Of Government Benefit - 

While politicians may debate whether or not America is the most "generous" (with other generations' money of course) socialist welfare state in the history of mankind, the undoctored numbers make the affirmative case quite clear and without any chance for confusion. The single most disturbing statistic: in 2011 nearly half of the population lived in a household that receives some form of government benefit, which in turn accounted for 65% of total federal spending, or $2.5 trillion, and amount to 15% of GDP. And yet some people out there still think these people, long since indoctrinated to do little but mooch off the welfare state (which will continue subsidizing its existence so long as debt rates are so low that the government can issue trillions each year without fears of consequences) will halt their iTunes purchases, will voluntarily stop subsisting on the government's teat, or will rebel against a government which is their only source of income? Why? Especially since something tells us that there will be a peculiar overlap between this 50% and the 50% of Americans that pay zero taxes.


Read more - 
http://www.zerohedge.com/news/united-welfare-states-america-2011-nearly-half-population-received-some-form-government-benefit