“Perhaps the greatest roadblock will be the huge legacy of public debt, which now averages almost 110% of GDP for the advanced economies, the highest level since World War Two!“-Christine Lagarde, IMF managing director

12 October 2012, officials with the International Monetary Fund, and the World Bank, issued dire warnings about any possible economic recovery, and they blamed the worsening economy on war and big corporations!

The IMF’s Lagarde said government spending on war prevents government spending on true economic growth: “This leaves governments highly exposed to subtle shifts in confidence. It also ties their hands, especially as they seek to build the infrastructure of the 21th century while respecting social promises.”

The IMF and the World Bank held meetings in Tokyo, Japan, this past week.  The new President of the World Bank, Jim Yong Kim, said big corporations should not be counted on to create jobs: “I’ve learned that the best solutions to economic and social problems lie with individuals and communities coping with these challenges in their daily life.”

According to Kim, one of those solutions would be to make loans easier to get, for emerging economies: “We’re developing new diverse instruments [loans] customized to their needs. As emerging economies take on a growing role in the global economy, I am personally committed to ensuring they have a strong voice within our institution.”

And that’s the point, this new financial help is not intended for countries like the United States, in fact the IMF says the U.S. and Europe need to get their acts together: “Whether you turn to Europe, to the United States of America, to other places as well, there is a level of uncertainty that is hampering decision makers from investing, from creating jobs….We need action…”-Christine Lagarde, IMF managing director

For the most part World Bank’s Jim Yong Kim played good cop, confidently presenting hope for recovery, while the IMF’s Christine Legarde played bad cop, hitting the audience with a dose of reality: “The recovery is still too weak.  Job prospects, for untold millions, are still too scarce.  And the gap between the rich and poor is still way too big.”