http://www.presstv.com/
Tue Jun 21, 2011 2:32AM
The International Monetary Fund (IMF) says the mounting debt crisis in Europe is threatening the economic recovery throughout the world.
In a statement issued on Monday, the IMF warned that the ongoing crisis could have "large global spillovers" if decisive action is not taken, AP reported.
The IMF advised the eurozone to expand the powers of its bailout fund and further integrate its economic policies, stating that the failure to resolve the fiscal problems of the eurozone's periphery could rapidly spread tension to the core of the area.
Summarizing a report on the policies of the 17-country zone, the IMF said, "A broadly sound recovery continues, but the sovereign crisis in the periphery threatens to overwhelm this favorable outlook, and much remains to be done to secure a dynamic and resilient monetary union," adding, "Failure to undertake decisive action could rapidly spread the tensions to the core of the euro area and result in large global spillovers.”
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It seems that the Greek people will not accept austerity and will choose to default. When this happens you can be sure that the banking system will be affected. Bob Chapman of the International Forecaster has a great piece on the Greek situation and if anyone would like a FREE copy please e-mail us at info@pfgmetals.ca . BK
