Where is the IMF when you don't want them?

International Monetary Fund chief Christine Lagarde has been in London. She is worried about Britain's cuts.

"Since the summer, the outlook has become more subdued - including in the rest of Europe and the United States, the UK's major trading partners. So risk levels are rising," she said.
"The policy stance remains appropriate, but this heightened risk means a heightened readiness to respond - particularly if it looks like the economy is headed for a prolonged period of weak growth and high unemployment."
Commentators say that she will be more direct in private.

There was a general strike in Italy last Tuesday. Berlusconi is, in his own words, in the shit. He needs German backing. Today European Central Bank chief economist (German) Juergen Stark resigned saying
"It will take a quantum leap to save the Euro."

In recent weeks, the ECB has bought more than 35bn euros in bonds, significantly reducing Italian and Spanish debt on top of the 76bn euros in Greek, Irish and Portuguese bonds it has bought since May 2010.)  Barack Obama has just unveiled a $450bn package of tax cuts and spending plans aimed at creating jobs and bolstering the economy.

And yet ...
The US market immediately responded by dropping 2%. Barclays dropped 9.4% and Royal Bank of Scotland declined by 5.4% Deutsche Bank fell 7%. France's Societe Generale fell 10.6% lower and Credit Agricole dropped 7.8%. And the euro fell 1.5% against the US dollar, to $1.3724, down to a six-month low. Berlusconi AND the banks are in the shit - again.

The G7 group of leading economies is meeting in Marseille to consider a "coordinated response" to the faltering global economy.

Capitalist economics has lined up western economies like dominoes. Don't say you weren't warned.