IMF, G-7 Seek `Bold' Changes to Protect Growth Amid Threats ..($50 oil)

[SoCalDem]

http://quote.bloomberg.com/apps/news?pid=10000006&sid=atgBp9OejJ1E&refer=home


IMF, G-7 Seek `Bold' Changes to Protect Growth Amid Threats
Oct. 3 (Bloomberg) -- The global economic recovery is at risk unless governments address growing trade imbalances, budget deficits and exchange-rate inflexibility as oil prices and interest rates rise, the International Monetary Fund said. ``The recovery has been uneven, and with oil prices doubling and global imbalances worsening, we agreed that action must be taken to address risks to the recovery,'' British Chancellor of the Exchequer Gordon Brown said at a news briefing in Washington, where the IMF, World Bank and Group of Seven are meeting. ``Bold reforms on a wide front are needed.''

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Oil prices that rose 68 percent in the past 12 months ``are causing an economic headwind,'' U.S. Treasury Secretary John Snow said after Friday's G-7 meeting.


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The prospect of slower growth next year means countries must speed efforts to fix imbalances in current accounts, the broadest measure of trade in goods and services, the IMF said. The U.S. for example needs to attract about $1.8 billion a day to fund its record-high current account deficit and keep the value of the dollar steady.

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The U.S., Europe and other industrial nations have been too optimistic about their ability to cut budget deficits and ensure money will be available to finance a growing elderly population, the IMF said. The fund earlier in the week cast doubt on a U.S. plan to cut its deficit by half in five years, and has said half the euro region nations are breaching rules that require them to keep deficit spending below 3 percent of gross domestic product.

``While most industrial countries target a gradual fiscal consolidation, in many cases this depends on relatively optimistic assumptions, and the policies are not well defined to achieve it,'' de Rato said in a statement to the IMF's policy-steering committee.

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Pension Funding

De Rato also said more needs to be done to plan for the costs of funding pensions as the baby boom generation ages.

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Officials began the meetings under tight security with participants being ferried in vans from their hotels by police escort as several blocks around the adjacent buildings of the World Bank and IMF in downtown Washington were closed to vehicles and pedestrians. U.S. intelligence reports in August said the al-Qaeda terrorist group may be targeting financial institutions and international organizations in New York and Washington. The World Bank and IMF agreed then to shorten their annual meetings to two days from four to minimize potential threats from terrorists or protesters.



To contact the reporter on this story:
Julie Ziegler in Washington at [email protected]

To contact the editor responsible for this story:
Glenn Hall in Washington at [email protected].
Last Updated: October 3, 2004 00:43 EDT

[The Straight Story]

1. My question is

What does Kerry plan on doing about it and how the heck can we at DU help him??

[MisterP]

2. "threats from protesters"?

like what, they'll run out of billyclubs and pepper spray from use on little old ladies and college students?

[ReadTomPaine]

3. Quite informative, thanks. <n/t>

[daleo]

4. It sounds like trouble

Hearing the acronym "IMF" is rarely a good thing. They will recommend that the industrial world get rid of whatever civilized social policy is left (health care, pensions, unemployment insurance), to deal with problems caused by rising oil prices and Bush's disastrous foreign policy. Perhaps a few bracing tax cuts for the rich. This will only make things worse, of course.

[Wright Patman]

5. When are the friggin' elderly

and near-elderly going to realize that Bushco has plans to turn them into Soylent Green?

Their future is eating dog food and then being the dog food. Even Ray Charles can see this coming, and now he is both dead AND blind.

[Scooter24]

6. A senior economist was

on the news yesterday and said that if nothing is done to slow the pace of consumption and increase production, that we could expect to see oil climbing to over $60 a barrel.

[Deja Q]

9. $60 is nothing. $100 or $150 could happen within MONTHS

At the current rate, of course.

[Massacure]

7. Increased efficiency + conservation is the answer.

Force Cars to have 40 mpg by 2008 and trucks to have 25 by 2008 Americans will use much less oil.

I heard china is also going to put new miles per gallon requirements on cars now too.

[SoCalDem]

8. China will either "nationalize" or close the US car companies

once they get all their roads built,and get their car business going.. there is NO way on earth that they will allow US companies to dominate "their" market..

We are doing just what we did in the 50's with the middle east.. We build the infrastructure, set up the market, and then they beat us at our own game :(

[54anickel]

10. WTF is this terra stuff at the end of the article?

Sheesh, cut their annual meetings in half. Whimps.

snip>

Officials began the meetings under tight security with participants being ferried in vans from their hotels by police escort as several blocks around the adjacent buildings of the World Bank and IMF in downtown Washington were closed to vehicles and pedestrians.

U.S. intelligence reports in August said the al-Qaeda terrorist group may be targeting financial institutions and international organizations in New York and Washington. The World Bank and IMF agreed then to shorten their annual meetings to two days from four to minimize potential threats from terrorists or protesters.

[SoCalDem]

11. They are a bunch of scared old guys.

They know that they have been fleecing the world for decades and the people are starting to get a bit restless:)