IMF Warns of ‘Darkening Economic Outlook’ in Call for Tighter Controls

The International Monetary Fund (IMF) published a paper Wednesday that warned of dark, troubled economic times ahead when the world can expect to have less of everything except “social instability.”

It cautioned tighter government controls in a host of day-to-day areas will be needed including elevated taxation rates, trade restrictions, monetary tightening, and fiscal measures directed at wealthy economies addressing “climate change” to help redistribute wealth to “vulnerable” countries.

The paper, authored by IMF Managing Director Kristalina Georgieva, was released as G20 ministers and central bank governors gather in Bali, Indonesia, to chart the next 24-months of global financial performance.

Georgieva, a former CEO of the World Bank and European Union (E.U.) commissioner, outlined the first problem is rising inflation which delivers punitive taxation without legislation.

She makes clear “Inflation is higher than expected and has broadened beyond food and energy prices. This has prompted major central banks to announce further monetary tightening—which is necessary but will weigh on the recovery. Continuing pandemic-related disruptions—especially in China—and renewed bottlenecks in global supply chains have hampered economic activity.”

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