Opinion: (Christine Lagarde, the IMF Chief): “The new head of the IMF on Saturday urged global policymakers to pursue urgent coordinated action, including the mandatory recapitalization of European banks, or risk descent into renewed world recession.
“‘Developments this summer have indicated we are in a dangerous new phase,’ International Monetary Fund Managing Director Christine Lagarde said on Saturday at an annual gathering of policymakers from around the world hosted by the Kansas City Federal Reserve Bank.
“‘The stakes are clear; we risk seeing the fragile recovery derailed. So we must act now,’ she said.
“Two years after the end of the worst of the financial crisis, growth in both the United States and Europe is sputtering, and debt crises and indecision on both sides of the Atlantic have shaken public confidence in a global recovery.”
My Comment: Lately, everyone begins to blame everybody else for negative impacts. Such impacts do take place, but they always have. It’s just that now we reveal that everyone is connected with everybody else in a single network of relationships, and thus, the sensitivity to actions increases. Unless we take measures towards mutual understanding (mutual guarantee), these relationships will quickly lead to war.