The Two Big Organizations Have Red Alert &Nbsp; The Global Economy Is Entering A New Crisis.

Face

Global stock market

Evaporation is 5 trillion and 700 billion dollars per month.

"The situation this summer has shown that we are at a dangerous new stage."

Lagarde, President of IMF, said at the Fed's annual economic forum 27, that the global economic growth is not enough. The fragile recovery process is likely to pause.

She called on global policymakers to take urgent steps to prevent a global recession.

"The United States should curb the decline in house prices, and European banks must increase capital to prevent the spread of debt crisis to more countries."

For those "debt laden countries", Lagarde suggested that there should be a delicate balance between reliable measures to repair the scale of assets and liabilities and maintain fragile economic recovery.

Investors worry about global economic growth

By the end of last week, global stock market value had evaporated by US $5 trillion and 700 billion.

UBS and Citigroup have lowered their forecasts for global economic growth, and expect the central banks of major economies to maintain their benchmark interest rates by the end of 2012.

Alan Sinai, President of New York, a decision economic company, predicts that the global economy will slip into recession with a probability of 30%.

G7 members

Only Germany's debt level is up to standard.

Before IMF issued a strong concern, BIS warned in a report that if the United States, Japan and European countries could not take prompt action to curb the surging momentum of their huge debts, the pace of domestic economic growth would be hampered.

Once an economy's public debt breaks through 80% to 100% of gross domestic product (GDP), it will start to adversely affect the economy.

The report quotes data from the organisation for economic cooperation and development (OECD), saying that in 2010, the level of public debt in the United States, Japan, the United Kingdom, France, Italy and Canada exceeded 80% of GDP.

Germany is the only country in the seven industrial nations (G7) whose public debt is less than GDP 80%.

BIS thinks,

For emerging economies, Eswa Prasad, a professor at Cornell University, gave advice on the 27 day: looking for other ways to protect themselves in the global crisis rather than hoarding US Treasuries.

"Bonds in the US and other developed countries may be mobile, but they are far from safe assets."

Pu De De proposed that the emerging countries that seek to avoid global shocks by buying their own treasury bonds would be better if they could jointly set up a pool of funds and use these funds during the crisis period.