These are some of the most worrisome quotes I’ve ever heard about theChinese economy. And they are from the head of the International Monetary Fund.
“We started with China at 11% growth, then 8%, then 7%then China will probably grow at 5% or 6%. Thepossibility of a global recession is real, we realize something must be done.”
“We are facing an unprecedented decline in output and we have evidence of substantial uncertainty limiting theeffectiveness of some fiscal policy measures.”
“We anticipate that the gross effect will last some time. We need large and diversified stimulus support that willlast longer than one or two quarters.”
What the IMF is telling us is that things are going to get very ugly.
