IMF Declares Bretton Woods Dead

imf council oct 2020

Kristalina Georgieva, the International Monetary Fund (IMF) Managing Director at Washington DC, has effectively declared the Bretton Woods financial system set up after the second world war as finished. “We must seize this new Bretton Woods moment,” she said, “to address some persistent problems like low productivity, slow growth, high inequalities, a looming climate crisis.” “We have seen global fiscal actions of $12 trillion. Major central banks have expanded balance sheets by $7.5 trillion. These synchronized measures have prevented the destructive macro-financial feedback we saw in previous crises.” So she argued, with the other side of it being an expectation that 2021 debt levels will go up significantly, “to around 125 percent of GDP in advanced economies, 65 percent of GDP in emerging markets; and 50 percent of GDP in low-income countries.” The IMF is a government owned global bank of last resort for bankrupt countries which is often criticized…

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