The International Monetary Fund says the continuing economic troubles of the United States and the “Eurozone” are

dragging the world economy into a “dangerous new phase.”  The organization warns that expansion in all major economies next year could be barely 1%, according to the BBC.

The International Monetary Fund is a union of 44 key countries which cooperate on economic initiatives.  The IMF sees the deepening debt of the U.S., its continuing housing crisis, and weak economic policy as a triple threat to the security of the rest of the world.

Greece and Italy are both sliding into deeper and deeper economic problems.  Greece continues to cut services and benefits to its people and Standard and Poors has downgraded Italy’s debt rating this year.

Money headaches in Greece are forcing other European governments to try to bale the country out with infusions of cash.  Germany, France, Great Britain, and even the U.S.  haven’t much to spare however.

The IMF organization warned that continuing political and economic woes in the US and eurozone could drag many economies back into recession.

In its World Economic Outlook bi-annual report, the IMF says the prognosis for economies in the developed world is “weak and bumpy expansion”.

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Filed under: Economy, Featured, Inside The KC, Politics, Sonja Eddings Brown by Sonja Eddings Brown, Sep 20, 2011