1. Rising Food Prices
2. Joblessness
3. Middle East turmoil
4. Weak finances in advanced economies.
All these could possibly derail the current economic recovery. Regarding the surge in food prices, World Bank President said that "We are one shock away from a full-blown crisis".
In addition, new ailments like overheating in emerging economies could also add to the existing list of problems.
Some other comments from IMF includes the following:
"There was a sense around the table... that we are still in a fairly fragile situation," said Tharman Shanmugaratnam, chairman of the IMF's policy-setting monetary and financial committee.
"We have to be extremely watchful, but we also need to develop the capabilities... to anticipate scenarios that could turn out to be ugly, and require that countries, including especially systemically significant countries, take actions early to prevent another crisis."
"We have to be extremely watchful, but we also need to develop the capabilities... to anticipate scenarios that could turn out to be ugly, and require that countries, including especially systemically significant countries, take actions early to prevent another crisis."
I cannot imagine what will happen to the united states if china and all the countries and all investors the world over shun the dollar. This is no joking matter panic would ensue Interest rates would rise and the federal reserve would be forced to buy bonds from the treasury to fund the government and pay interest on all of the governments bills notes and bonds. When the buyers for united states debt obligations disappears the whole system will come crashing down. This is the type of thing that peter shiff has been warning everyone about when the ability of the united states to pay its debts becomes clearly in doubt all the buyers for united states debt securities disappears overnight.
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