Posted on Wednesday, 25th January 2012 by Jesse Walker
THE world will face a “1930s moment” of the kind that brought on the Great Depression unless money can quickly be found to support nations such as Italy and Spain, the International Monetary Fund says.
Before releasing dramatically downgraded economic forecasts early this morning Australian time the IMF chief, Christine Lagarde, told an audience in Berlin $1 trillion would be needed to support ailing governments and stave off a deeper crisis – half of which would have to come from Fund backers such as Australia.
The Treasurer, Wayne Swan, backed Ms Lagarde, saying without “larger firewalls” to protect embattled European nations the global economy was at risk.
Christine Lagarde … self-control.
But the shadow treasurer, Joe Hockey, questioned whether such payments were in Australia’s national interest.
The IMF has shaved three quarters of 1 per cent off its previous global growth forecast, issued in September.