I’m very impressed by the recent declarations from the director of the IMF Dominique Strauss-Kahn, he thinks the USA credit crunch requires government intervention at a global level arguing that the recession is not only in USA but globally.

Which are his basements? We’ll have to wait until the IMF delivers their semester analysis and see in what the director of the IMF is based to say such an authoritarian argument. From my point of view this issue is only from USA, and was created because of the government involvement and control over the market, specially when they give those credits to people with bad credit history creating a fictional grow of the inmobiliary market deriving in this recession since affected the stability of the main banks in USA.

Ok, this affects the imports that USA could make from other countries since their consume rate is getting lower but this will make prices lowers since there will be more offer than demand so that will help to elevate the consuming of products in markets like the European and the Asiatic. USA is exporting only services, not products so this will not affect directly the delivery of any kind of products, most of them are elaborated by Chinese companies and delivered directly from China.

USA is not anymore what used to be, now the global market doesn’t depends on USA. That’s why I reject what the IMF said, involving the governments in the control of the market would be worst making all the countries goes in the same direction that USA is, floating over bubbles of fictional economic prosperity. This is what the FED has made all this years controlling the market in the USA, pumping more money in the market without real support and this is what they get, controlling the interest rates and this is what they get. The market can do this by himself.
If you have any doubts about why the FED can’t do what they want read this article in mises.org from Frank Shostak and you will understand a little better.

The government control over the markets could spread the USA crisis globally, Dominique instead should ask to the USA government that release the market and let the market be really free and works as knows to do.