Chief economist Oliver Blanchard on the IMF’s latest forecast.
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- IMF revises forecast down, global growth projected at 3.3 percent this year
- World trade slumps, hurting emerging markets, developing countries
- Prospects could improve if clouds over euro area, U.S. “fiscal cliff” are lifted
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Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
So the IMF’s solution is to pump in more money. It seems to me we need to figure out why the hundreds of trillions of dollars that already exists is not circulating as it was designed to do.
The money is not circulating because the central banks are rubbish at designing anything to do with money. All price fixing ( ie interest rate setting) and money printing results in the most dire unintended consequences- eventually.
Why should you give more cash to anyone who has a reputation for losing it?