A day after the International Monetary Fund (IMF) announced the end of the US bailout, the World Bank is warning of the risks that a financial collapse could lead to an economic meltdown in the United States.
Speaking at the annual meeting of the World Economic Forum in Davos, Switzerland, World Bank President Jim Yong Kim said the US has not adequately prepared for the consequences of a financial meltdown that could lead not just to a global economic meltdown, but also to an even wider social and political breakdown.
“This is a global financial meltdown,” Mr Kim said.
“We need the US to take it to the IMF.
It is not going to be easy.
But we need to do it, and it is not a choice that we have made.”
The people of the United State, the citizens of the world, we need your help.
We need to get the money to them.
It’s not going anywhere.
“The IMF, which announced in December that the US had withdrawn from the bailout, is now preparing a report to the World Trade Organization (WTO) on the future of the IMF’s operations.
But the IMF said it had not received the draft report.”
At the same time, the WTO is considering whether it can help the US recover from the effects of a severe economic crisis,” it said in a statement.”
These processes will continue over the coming weeks and months.
“The US will have to repay more than $4tn in its bailout by the end, which could put pressure on other countries to do the same, the IMF warned.
The International Monetary Foundation (IMFC) has been overseeing the rescue since 2008 and is set to have its annual meeting on Thursday.
The IMF is set in a conference room at the Davos World Trade Center.