Well this is interesting to see the International Monetary Fund (IMF) out there making some bold statements. Although they do water down the seriousness of the matter, its at least good to see them making a contribution.
I’d take this article with a grain of salt as they applaud government intervention (read “stimulus” or “money printing”) and then go on to suggest huge government spending as a “growing sovereign risk” in the same sentence.
“The global financial system and the world economy are slowly regaining their health, thanks in large part to unprecedented interventions by governments, but the sharp rise in government debt during the economic crisis from already elevated levels helped create what the IMF says is the newest threat to the financial system: growing sovereign risk.”
– James Rowe, Global Financial Stability Report
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