IMF Deflation can be disastrous only for rich.
The head of the International Monetary Fund (IMF) has warned of the risks of deflation to world’s economic recovery despite a rising growth in the global economy.
« Momentum strengthened in the latter half of 2013, and should strengthen further in 2014 — largely due to improvements in the advanced economies, » Christine Lagarde said in a speech at the National Press Club in Washington on Wednesday, AFP reported.
Lagarde pointed out, however, that deflation in the advanced economies threatens to derail this fragile recovery, requiring central banks in the US and Europe to keep easy money flowing.
« With inflation running below many central banks’ targets, we see rising risks of deflation, which could prove disastrous for the recovery, » she said.
« Global growth is still too low, too fragile, and too uneven,” the head of the IMF noted, adding, « If inflation is the genie, then deflation is the ogre that must be fought decisively. »
Deflation encourages people to wait for prices to fall further, leading to a reduction of personal consumption and a decline in investment because it can increase the real cost of borrowing.
Lagarde’s projections echoed the optimism expressed earlier in the day by the World Bank, which said the global economy was at a « turning point » but « remained vulnerable. »
Deflation would be a disaster for these demons in power…for it is inflated prices on everything that keeps these morally and spiritually spent evils money laundering scheme afloat…it certainly does nothing for the working man but ensure more misery and pain…these dark entities offer nothing to life except, death and destruction, misery and pain, disease, exploitation, GREED, power and lust…truly sick in the head and will be cut out like a cancer very soon…including the mindless and easily programmed robots that support this evil system.