IMF Managing Director Georgieva Terms Current Crisis ‘Humanity’s Darkest Hour’
April 4, 2020 (EIRNS)—Speaking at a joint press conference with the WHO in Geneva, IMF Managing Director Kristalina Georgieva said: “This is a crisis like no other. We have witnessed the world economy coming to a standstill. We are now in recession. It is way worse than the global financial crisis [of 2008-2009]. This is, in my lifetime, humanity’s darkest hour—a big threat to the whole world.” She added that there has already been about $90 billion in capital flight from the developing sector, but the best she could offer was that the Fed should increase its swaps with foreign central banks.
Georgieva said the IMF is working with the World Bank and WHO to get official bilateral creditors to suspend debt collections from the poorest countries for at least a year until the pandemic subsides. Reuters reported that World Bank President David Malpass said “a debt standstill could begin on May 1. During the suspension period, the World Bank and the IMF could evaluate the sustainability of those countries’ debt and the possible need for a debt reduction by official creditors and commercial creditors.”
This, of course, doesn’t even begin to touch the real problem. Taking a small part of the global $1.8 quadrillion bubble of unpayable financial assets off the table for a few months, and then trying to force its repayment somewhere down the line, will only hasten the total blowout.
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