“The global economy is in a dangerous new phase”. With these words, the IMF sounded the alarm at its September annual meeting. While the US economy continues creeping ahead, the epicenter of the global economic turmoil remains in Europe. World economic policymakers and masters of the global financial universe gathered at the IMF annual meetings on September 23-25 were unable to agree on any policy coordination measures. Moreover, European policy makers and political leaders, as well as academics, remain bitterly divided over a solution to the European sovereign debt crisis.