At their annual meeting the IMF downgraded global growth again to 3.1% and warned of potential global recession. The IMF warned that asset prices around the globe aren’t adequately reflecting the hazards from investors moving into riskier markets with support from central banks’ extraordinary action in recent years. The IMF estimates developing nations—led by China—may have over-borrowed by roughly $3 trillion, and is warning that those countries could face a wave of corporate defaults.
Surprisingly after all that’s happened, Treasury Secretary Jack Lew said Tuesday that the U.S. would support the yuan’s inclusion in the IMF’s basket of global reserve currencies, if the emergency lender’s conditions were fulfilled. With the fear of a US veto removed, it looks like the IMF will be adding China to their list of reserve currencies and to their SDR basket of currencies.
IMF Emerging-Market Troubles Risk Triggering Asset Fire Sales (10-7-15) WSJ http://www.wsj.com/articles/imf-emerging-market-troubles-risk-triggering-asset-fire-sales-1444226633
IMF Downgrades Global Economic Outlook Again (10-6-15) WSJ
China Begins Disclosing Reserves to IMF (9-30-15) WSJ
Markets Gain Confidence in China’s Yuan (10-8-15) WSJ
Devaluation Strengthens China’s Hand at IMF (9-2-15) WSJ
A Wave of Defaults May Be Just Around the Corner Says Deutsche Bank (10-5-15)
The World Map Of Public Debt by Visual Capitalist • October 8, 2015
What if we were to redraw the world map based on the sustainability of national debt levels?
The IMF Just Confirmed The Nightmare Scenario For Central Banks Is Now In Play (9-6-15)