IMF’s Lagarde: US Fiscal Cliff Key Global Risk
The IMF’s Christine Lagarde stated Thursday that the number one global risk was not the Euro-zone debt crisis, but rather the ‘looming US fiscal cliff‘.
Lagarde’s statement went unreported in the US as it slices open everything MSM MOPE continually attempts to obfuscate by continually harping on the Euro-crisis.
The US is Greece Times 100.
LONDON (MNI) – The looming US fiscal cliff is the number one risk globally at present, followed by the Eurozone and then the threat of another oil price surge, IMF head Christine Lagarde says.
Lagarde, speaking at the Global Investment Conference here, said the Eurozone is clearly at the epicentre of the crisis right now but is far from the only risk at present.
“Risk number one … is clearly the fiscal cliff in the United States of America, where the deficit and debt to GDP ratios are actually worse than in the Eurozone,” she said.
Although the US does not face the Eurozone’s challenge of trying to secure accords with a host of states, its legislators are also struggling to take action.
“There is great uncertainty as to how Congress is going to actually deal with this fiscal cliff,” she said.
If the US does go over the cliff it could have an initial contractionary effect on growth of 1 percentage point, the IMF estimates.