World economy in severe recession, IMF says

[nilram]

Source: Reuters

WASHINGTON (Reuters) – The International Monetary Fund on Wednesday slashed growth forecasts for every major country and urged governments to take forceful action to ensure the world economy's recovery from a severe recession.

In its latest World Economic Outlook, the IMF said the global economy would likely contract 1.3 percent this year in the deepest post-World War Two recession by far.

Growth is set to re-emerge at a sluggish 1.9 percent next year but the pick-up depends on aggressive measures to repair a poorly functioning financial system.

"The longer this goes on, the longer and the deeper will be the recession," IMF chief economist Olivier Blanchard told a news conference.

Read more: http://news.yahoo.com/s/nm/20090422/bs_nm/us_imf_4

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World says, "DUH!"

[Laelth]

1. Spend more government money, now!

The message couldn't be clearer. Ignore the Republicans and the teabaggers. Save us from another great depression.

I am no fan of the IMF, but this time, they're right.

:dem:

-Laelth

[ixion]

2. The government spending more of what we don't have only makes things worse

not better.

[Laelth]

3. Um ... I disagree.

Our national debt still isn't as big (as a percentage of GDP) as our national debt was when WWII broke out. It was the massive government spending during WWII (all of it increasing the national debt) that got us out of the Great Depression.

:dem:

-Laelth

[crankmob]

4. the capacity to manufacture our way out of a recession/depression played a large roll as well

it would only be a band-aid this time around..

[Laelth]

10. Welcome to DU!

Manufacturing would crank up in a heartbeat if it were government subsidized.

:dem:

-Laelth

[izquierdista]

11. Manufacturing has flown the coop

It can't and won't be the cure all because (1) it's all gone to lower wage countries and (2) Americans are overloaded with crap in their houses, garages, and storage units and don't NEED more manufactured stuff.

To get back to full employment, travel, leisure, recreation and the arts need to be stimulated. Domestic energy production from wind, solar, geothermal, and biomass can also provide good paying jobs.

[Laelth]

12. I am with you on everything but wind power.

Wind Power BLOWS.

See the following:
http://www.keepersoftheblueridge.com/faqs.html
http://www.nortexwind.org/index.htm
http://www.stopillwind.org/index.php
http://windconcernsontario.wordpress.com/
http://www.savewesternny.org/
http://www.epaw.org/

Or just watch this series of videos:
http://www.youtube.com/watch?v=SNxvkrgoPLo&feature=related
http://www.youtube.com/watch?v=_utFV2ukOtU
http://www.youtube.com/watch?v=AOd5tSZF3A4&feature=related

There's more, but you get the idea. :)

The United States is a LIBERAL Country.

:dem:

-Laelth

[Old Hob]

15. Too bad we don't manufacture things anymore.

[Mithreal]

6. Restore pre-Reagan tax on the top and mercilessly hunt down ultra wealthy evaders.

That will give us some cash to work with.

[bemildred]

7. I like the way you think.

Straight to the root of the problem.
:thumbsup:

[kimmerspixelated]

8. That's good, I keep thinking

if we closed the majority of our military bases around the world, we'd save a bundle to spend on healthcare and create a lot of manufacturing jobs as well!

[bemildred]

9. But who would protect us from all the enraged people who want the military bases back? nt

[razorman]

13. Tough shit. We don't owe them protection.

The Europeans should be defending Europe. There should never have been so much as a single U.S. Government ballpoint pen in the Balkans.

[bemildred]

5. World needs the IMF, the IMF says. nt

[xchrom]

14. recommend

[Quantess]

16. G.W. Bush was just in office.

He fucked our economy up, badly.