Last week during the closing day of the World Economic Forum’s annual meeting in Davos, Switzerland, the International Monetary Fund’s (IMF) managing director Kristalina Georgieva issued a cryptic warning about the future of the world economy, quenching optimism that it might get better, but tried to convey that it will perhaps be not as bad as some may think.
Georgieva gave her outlook during a session called “Global Economic Outlook: Is this the End of an Era?”
Geoff Cutmore, a CNBC anchor moderated the talks. Others partaking in the talks were Christine Lagarde, President of the European Central Bank; Bruno Le Maire, French Minister of Economy, Finance and the Recovery and Industrial and Digital Sovereignty of France, Ministry of Economy, Finance and Industrial and Digital Sovereignty; Kuroda Haruhiko, Governor of the Bank of Japan; and Lawrence H. Summers, a Charles W. Eliot University Professor at Harvard Kennedy School of Government.
During the session Georgieva had this to say:
Stay put. My message is it is less bad than we feared a couple of months ago — but less bad doesn’t quite yet mean good. Let me start from what has improved and why we have to be cautious. What has improved is inflation seems to have started leading in the right direction, in other words, down.
What has improved is the prospect for China to boost growth.
We project 2.7% for the world. This may be corrected somewhat in a couple of days… What is positive is that we have seen demonstrably the strength of labor markets translating into consumers spending and keeping the economy up.
Be that as it may, Georgieva went on to emphasize her opinion for caution, making it clear that economic conditions are not good, which is putting things mildly.
Why we should be cautious? Well, first, 2.7% growth, if this is the growth we achieve, by far is not fabulous. This is the third lowest growth rate in the last decades after the global financial crisis and Covid. It’s not great.
What if the good news of China growing faster translates into oil and gas prices jumping up, putting pressure on inflation?
Stay in the middle of realism, that seems to serve the world well.
She added
Furthermore, she says that the Russia-Ukraine conflict continues to pose a “tremendous risk” for confidence around the world.
She also hinted that rising unemployment could also come back in a great way.
It is very different for a consumer to have cost of living crisis and a job than to have cost of living crisis and no job.
She noted
Georgieva also warned on the chance of international fragmentation of trade to cool further down.
If we diversify rationally, the cost of this adjustment would be low. We put it down to 0.2% of GDP. If we are like an elephant in a china shop and we trash trade that has been an engine for growth for so many decades, the costs can go up to 7% loss of GDP: $7 trillion.
Be pragmatic, collaborate, do the right thing. Keep the global economy integrated for the benefit of all of us.
Speaking in the context of supply chains
This is not the first time Georgieva has warned on instability for 2023.
In late-December of 2021 The WinePress reported how she admitted that central banks around the world must continue to print money and inflate the money supply in order to keep the general framework somewhat functionable.
We may see economic collapse in some countries unless G20 creditors agree to accelerate debt restructurings and suspend debt service while the restructurings are being negotiated.
She via blog post at the time
Moreover, in September of last year said to “buckle up” because 2023 was going to be a rough year.
Increased interest rates will bite and we will see the impact on growth. For hundreds of millions of people, it will feel like a recession so buckle up.
She stated
But financial outlets like The Trends Journal rebuked the statement and retranslated what she actually meant:
First there is the arrogance of the IMF chief’s statement that “For hundreds of millions of people, it will feel like a recession so buckle up.”
“Buckle up”? You mean get ready to suffer as you can’t make ends meet and life becomes more miserable? But not for the IMF head whose net worth is believed to be $7 million and she makes $351,758 annually from the IMF.
And, we maintain our forecast for a deep recession in most nations as Dragflation spreads across the globe.
AUTHOR COMMENTARY
This wicked women is just talking out of both sides of her mouth, and just gaslighting everyone, just like the rest of the WEF does all the time. Georgieva already let the cat out of the bag about how she really feels last year, telling the serfs to “buckle up.”
Say what you will about her, but she is not wrong though. Allow me to translate what she said while sitting in her comfy chair in Davos: “Nations around the world are going to collapse, and there will be anarchy in the streets, because they believed what the TV told them – that everything is getting better.”
[22] But this is a people robbed and spoiled; they are all of them snared in holes, and they are hid in prison houses: they are for a prey, and none delivereth; for a spoil, and none saith, Restore. [23] Who among you will give ear to this? who will hearken and hear for the time to come? Isaiah 42:22-23
Even so, there will be TONS of opportunity this year and the years to follow because of this collapse. Therefore, stay with it, watch, pay attention, be patient, be vigilant, and be ready to capitalize on the situation.
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
The WinePress needs your support! If God has laid it on your heart to want to contribute, please prayerfully consider donating to this ministry. If you cannot gift a monetary donation, then please donate your fervent prayers to keep this ministry going! Thank you and may God bless you.
I think the elites are pulling something. Here is something very interesting: https://www.msn.com/en-us/money/markets/the-biggest-risk-to-the-market-is-no-recession-at-all-in-2023-jpmorgan-strategist-says/ar-AA16XhNU?ocid=mailsignout&li=BBnb7Kz