KW: Conversation over global monetary policy is swirling. At the helm of much of the discussion is international policy at the International Monetary Fund (IMF). The IMF is an autonomous part of an emerging scheme of global governance accountable only to a small elite of central bankers, finance ministers and heads of state. Currently, the U.S maintains the number two guy at the the IMF, David Lipton. Lipton, as the deputy head of the IMF, is now warning that “crisis prevention is incomplete” after a decade following the last meltdown in the global economy. He told a crowd of economists, “As we have put it, ‘fix the roof while the sun shines’… I see storm clouds building and fear the work on crisis prevention is incomplete.”

When the IMF speaks, major bankers from around the world listen. Here’s why you should take his warning very seriously and what he views as the biggest threat to the economy today.

Deputy head David Lipton says global banking system is not prepared for another downturn

Source: IMF warns storm clouds are gathering for next financial crisis | Business | The Guardian