IMF boss repeats call for Plan B

The new boss of the International Monetary Fund, Christine Lagarde, has given her strongest warning yet that Britain should slow the pace of its spending cuts. In an interview with the German weekly newspaper, Der Spiegel, she called for governments, international institutions and central banks to work together to avoid a double dip recession.

According to Reuters, Lagarde told the German paper:

“Looking at Europe, we recommend countries to adjust their austerity programmes to a changed situation and consider measures to drive growth…

“If the United States launches a credible middle-term adjustment programme, there is possibly room to abandon the short-term austerity measures and to introduce some measures to drive growth”

Last month, Lagarde made a similar argument in the Financial Times when she called for “short-term support for jobs and growth” and argued that”slamming on the brakes too quickly will hurt the recovery and worsen job prospects”.

She is joined today in her calls for a Plan B by the boss of the world’s largest bond fund. PIMCO boss, Bill Gross, said:

“The economy in the UK is worse off than it was when the plan was developed, so there should be at a minimum fine-tuning and perhaps re-routing of the plan.”

The statement is a reversal for Gross who last year described George Osborne’s plans as “probably the best combination of fiscal and monetary policies”.

The time has clearly come for a Plan B on fiscal austerity and a plan for growth.

http://twitter.com/davisrospeaks/status/110620902328242176 Ros Davis

IMF boss repeats call for Plan B reports @wdjstraw http://t.co/J7ojYTA
http://twitter.com/labour52rose/status/110620910599417856 Alex Braithwaite

RT @leftfootfwd: IMF boss repeats call for Plan B http://t.co/ogkeoW1
http://twitter.com/wdjstraw/status/110634324126203904 Will Straw

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/maximmanchester/status/110634756202442753 Max

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/erazman/status/110635691599343616 E Azicate

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/therightarticle/status/110638813465948160 Michael

IMF boss repeats call for Plan B l Left Foot Forward – http://j.mp/qNKNSQ
http://twitter.com/trakgalvis/status/110640159460048896 Trakgalvis

RT @leftfootfwd: IMF boss repeats call for Plan B reports @wdjstraw http://t.co/HiwZIyH #NewsClub
http://twitter.com/1954candanga/status/110641253804285952 petra

"@leftfootfwd: IMF boss repeats call for Plan B reports @wdjstraw http://t.co/jJAbyzF #NewsClub"
http://twitter.com/pollytoynbee/status/110643851106070528 Polly Toynbee

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/mostlyahardie/status/110644518604374016 Andrew Hardie

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/pcsavage/status/110644584018751488 Peter Savage

IMF boss repeats call for Plan B and is joined by the boss of world's largest bond fund http://t.co/EpU95w5
http://twitter.com/chris1966/status/110644631020126208 Chris Linthwaite

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/simonscott1975/status/110644950378610688 Simon Scott 2012

Osborne pushed "no alternative" before election. That means he can't come up with a Plan B. http://t.co/Tp37Csh #doubledip
http://twitter.com/chrispenberthy/status/110644962605023232 Chris Penberthy

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/redstarbelsize/status/110645109267234816 William French

Pimco boss: Osborne shd change course. GO gleefully endorsed 'nitroglycerine' comments 2010, so what's his line now? http://t.co/b63cwl2
http://twitter.com/sea55red/status/110647056091189248 Sandra Ayres

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/labour52rose/status/110649076349014016 Alex Braithwaite

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/chwright3/status/110649508853055488 Chris Wright

RT @leftfootfwd: IMF boss repeats call for Plan B http://t.co/ttkCjyP
http://twitter.com/politicalplanet/status/110649689329774593 Political Planet

IMF boss repeats call for Plan B: The IMF's boss has given her strongest warning yet that Britain should slow th… http://t.co/EAVBOkj
http://twitter.com/falseecon/status/110650702094798848 False Economy

RT @leftfootfwd: IMF boss repeats call for Plan B reports @wdjstraw http://t.co/5pmtYTk
http://twitter.com/christoclifford/status/110651020085960704 christine clifford

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/westernshores/status/110651392095563776 Pen

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
Mike Thomas

Let me see now, European bond markets being priced up because they are awash with debt, they have a mickey mouse currency and are finding it difficult to finance because there are more attractive UK gilts to buy.

Ergo, get the UK to gear up its debt, pricing their bonds upwards and therefore level off the playing field.

As for the boss of PIMCO, they have blood on the floors thanks to their positions on the UK banks.

Nothing to see here, move along.
http://twitter.com/angusde/status/110653720785715200 angus murray

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/noxhanti/status/110655735318327296 Noxi

RT @wdjstraw: Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/HfqK7L0
http://twitter.com/june4th/status/110655732537495552 Noxi

RT @wdjstraw: Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IOFDuZq
http://twitter.com/johnmoulding/status/110656419027619841 John Moulding

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/stuwhitt/status/110657652178161664 Stuart Whittingham

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/modditydodds/status/110659899897294848 Knut Cayce

RT @leftfootfwd: IMF boss repeats call for Plan B http://t.co/ttRAWYB
http://twitter.com/drkmj/status/110669818012766209 DrKMJ

RT @leftfootfwd: IMF boss repeats call for Plan B reports @wdjstraw http://t.co/m3XJvWs #NewsClub
http://twitter.com/shefanticuts/status/110673167009320960 Anti-Cuts Alliance

RT @leftfootfwd: IMF boss repeats call for Plan B reports @wdjstraw http://t.co/5pmtYTk
http://twitter.com/indigenati/status/110674892155920384 IndigeNati

RT @leftfootfwd: IMF boss repeats call for Plan B http://t.co/7kgP6ho > Dear Ms Lagarde, pls go & slap Osborne to his senses! #tearshairout
http://twitter.com/sarahemilyduff/status/110677181960699905 Sarah Emily Duff

RT @leftfootfwd: IMF boss repeats call for Plan B http://t.co/emHLmDI
http://twitter.com/nickbent/status/110677400181932032 Nick Bent

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/abelardinelli/status/110677566309937152 Alex Belardinelli

RT @wdjstraw: Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/Q9dVxih
http://twitter.com/yrotitna/status/110677677467385857 Juan Voet

RT @leftfootfwd: IMF boss repeats call for Plan B reports @wdjstraw http://t.co/5pmtYTk
http://twitter.com/oldtrot/status/110678154468794368 OldTrot

RT @leftfootfwd: IMF boss repeats call for Plan B http://t.co/o5QFZNb < IMF getting seriously worried about double-dip recession
http://twitter.com/michaelh14/status/110679436684312576 Michael H.

RT @wdjstraw: Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/Q9dVxih
http://twitter.com/hopbin/status/110707008549818368 James Maddison

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/cde5527/status/110710774099476480 Charles Ellis

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/lenottesen/status/110711561789767680 Len Ottesen

“RT @sarahemilyduff: IMF boss repeats call for Plan B http://t.co/xubl2z8” When the IMF calls you out on austerity, you've gone to far.
http://twitter.com/stevevbrewer/status/110715489919049728 Steve Brewer

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
Leon Wolfson

Oh look, flat-line growth. It’s still too high for you, isn’t it Mike. No, no, nothing to see as the poor get hammered by 10% effective inflation.
http://twitter.com/timmacgregor/status/110733198593499136 tim macgregor

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
http://twitter.com/martinhinds/status/110737464850788352 Martin Hinds

Boss of world's largest bond fund says UK should think again about austerity plan: http://t.co/IjfrYUG
Mike Thomas

Leon,

You have your beloved Labour Party to thank for the inflation thanks to QE and devaluing Sterling, not to mention the Balls/Brown/Darling Mexican stand-off more interested in their careers than the economy.

As for the poor, who got rid of the 10p tax rate?
http://www.leftfootforward.org/2011/09/ifs-questions-governments-short-sighted-failure-to-invest/ IFS questions Osborne’s “short sighted” failure to invest in science and skills | Left Foot Forward

[...] of all the other evidence, George Osborne’s stubborn refusal to heed the IMF chief’s call for a Plan B, repeated this morning, looks more and more misguided by the day. Share | Permalink | Leave a [...]
Leon Wolfson

Mike;

You’re delusional. I don’t support the centralist Labour party, I’m a left winger.

The 10p tax was a mistake in the first place, and ended up hurting nobody. As opposed to the constant hammer after hammer against the poor which your Tories are enthusiastically wielding. Sockpuppet of Anon E Mouse? He uses the same utterly broken and idiotic argument.
http://twitter.com/londoniww/status/110834986202054656 London IWW

##IMF (#Scum ) boss repeats call for Plan B http://t.co/lwdaymT | #GlobalEconomy
http://politicalporkies.wordpress.com/2011/09/08/be-very-scared-this-man-is-in-charge-of-the-uk-economy/ Be very scared. This man is in charge of the UK economy | POLITICAL PORKIES

[...] austere IMF, cited repeatedly by the government as supportive of their radical agenda, are now calling for a ‘Plan B’ to austerity, that is making a bad situation [...]
http://www.leftfootforward.org/2011/09/barroso-pushe-for-plan-b/ Barroso joins the international push for Plan B | Left Foot Forward

[...] on from the new boss of the IMF, Christine Lagarde, who at the beginning of this month warned that Britain should slow the pace of its spending cuts, Barroso said: “It is true that we do [...]
http://www.leftfootforward.org/2011/11/george-osborne-should-change-course-but-wont/ Osborne should change course next Tuesday, but he won’t | Left Foot Forward

[...] George Osborne won’t change course next Tuesday, but he should. Even the IMF now believes governments should relax fiscal tightening in the short-term, while maintaining a credible [...]
http://www.leftfootforward.org/2012/01/the-double-dip-begins/ The double-dip begins | Left Foot Forward

[...] IMF boss repeats call for Plan B – Will Straw, September 5th 2011 Share | Permalink | Leave a comment [...]