IMF cuts global growth forecast again, warns financial turmoil may derail growth

In its latest World Economic Outlook, the International Monetary Fund has cut its global growth projection again, stating that the financial disturbance might "derail" growth. However, this message was eclipsed in OCED review committee Chairman William White's statement that China might increase the stake on FX wars while the global system has become highly vulnerable to the degree that there is an upsurge in bankruptcies which will test the social and political stability.

"The situation is worse than it was in 2007. Our macroeconomic ammunition to fight downturns is essentially all used up. Meanwhile, debts have reached such heights that many...will never be serviced or repaid. The only question is whether we are able to look reality in the eye and face what it coming in an orderly fashion, or whether it will be disorderly", says William White.