IMF chief Christine Lagarde has warned the world faces an economic spiral reminiscent of the 1930s unless action is taken on the eurozone crisis, according to the BBC Business News
Ms Lagarde, speaking in Berlin, warned of a danger of rising unemployment if governments did not act together.
She said the Fund needed 500bn euros more to help sustain those countries worst hit by the eurozone crisis.
She added that Germany's economy depended on the economic health of its customers in other eurozone countries.
Ms Lagarde, who met German Chancellor Angela Merkel, said that the eurozone needed a "larger firewall" to prevent the debt crisis spreading.
Talks between Greece and its creditors were adjourned on Friday amid Greek hopes a large chunk of its debts could be written off.
In a BBC interview, Ms Lagarde said now was the time to act in order to avoid a 1930s-style depression.
She said: "Looking at it from this perspective, 2012 must be a year of healing. But as Hippocrates put it long ago: 'Healing is a matter of time, but it is sometimes also a matter of opportunity.'
"And today, it has to be an opportunity of our own making. Otherwise, we could easily slide into a 1930s moment.
"A moment where trust and co-operation break down and countries turn inward. A moment, ultimately, leading to a downward spiral that could engulf the entire world."
Hopes for success
To spur growth, she called indirectly on the European Central Bank to lower interest rate. With inflation falling sharply, "additional and timely monetary easing will be important," she said.
However, she added that there was still a chance of a resolution to the crisis.
She said: "I remain ever hopeful. I believe we can avoid such a scenario and I say this for a simple reason: we know what must be done.
"Although the economic outlook remains deeply worrisome, there is a way out. Now the world must find the political will, the collective will, to do what it knows must be done."
Readers: Make a note of 20th March 2012, a date when Greece must either put up or default, what happens in the lead up should give us a few clues as to how this year is going to go.
Regarding www.skoptionstrading.com. The year has started reasonably well for us as we currently have three positions and they are showing profits of 62.46%, 26.85% and 2.33% respectively.
Please be aware that discussions are taking place regarding an increase in the price for this service for new members, so if you are thinking about joining us, then do it sooner rather later in order to avoid this additional expense.
Our model portfolio is up 399.82% since inception
An annualized return of 93.60%
Average return per trade of 36.33%
94 completed trades, 86 closed at a profit
A success rate of 91.48%
Average trade open for 50.61days
So, the question is: Are you going to make the decision to join us today?
Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.
To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. Winners of the GoldDrivers Stock Picking Competition 2007
For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.
For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.