Saturday, February 7, 2009
The International Monetary Fund (IMF) is the organization that audits the books of countries world-wide to determine their real financial health. The IMF is also responsible for bailing out countries in trouble, and stabilizing the world's economic systems.
The IMF has also performed a complete audit of the whole US financial system, and therefore has a clearer idea of American finances than just about any other organization.
So the fact that the head of the IMF is saying that the world's advanced economies are already in a depression carries great weight.
He is not alone. The following people have also said we are already in a depression:
- Nobel economist Joseph Stiglitz
- The former Secretary of Labor
- Leading investment advisor Ray Dalio
- Well-known investment advisor Doug Casey
- And many others.
Many economists and analysts actually believe that it will be even worse than the Great Depression.
Of course, just like the American government refused to admit we were in a recession for an entire year - and then announced "oh yeah, we guess we've been in a recession for the last year" - officials are now doing everything they can to pretend we are not in a depression. But even government officials who studiously avoid the "D" word so they don't ruffle people's feathers still admit that conditions are "similar to" the depression.