Thursday, December 15, 2011

'A return to the Great Depression': IMF boss ramps up pressure on EU with gloomy new recession warning - 16th Dec 2011

The world is heading for a new Great Depression, the head of the International Monetary Fund warned yesterday.

In an apocalyptic assessment of the debt crisis, Christine La;garde said the disaster in the eurozone was escalating – despite last week’s treaty designed to prop up the currency.

Delivering a clear warning that Europe has still not done enough to prevent the collapse of the euro, she insisted every country in the world would need to help boost growth.

Mrs Lagarde warned that failure to solve the crisis would lead to ‘protectionism, isolation, and other elements reminiscent of the 1930s Depression’.

She added: ‘This is exactly the description of what happened in the 30s and what followed is not something we are looking forward to.’ Read More