You might recall how China killed the release of the IMF report. Notice how China can get a report repressed, unlike most countries, or do they even try. The biggest news is how China is on track to be the world's largest economy.

Well, finally the IMF released the report.

What's frightening is how the IMF shows China's stimulus worked and then some. The difference between them and the United States? China has the jobs, they now have the world's manufacturing base.

Indeed, all of Asia (minus Japan) is experiencing a V Shaped Recovery:

ADB has upgraded its 2010 growth forecast for the 14 economies of emerging East Asia to an aggregate 8.1% from the 7.7% projected in ADB’s Asian Development Outlook 2010 published in April. The forecast for the region’s economic growth in 2011 remains at 7.2%.

The IMF is back to telling China to significantly revalue their currency. This is the elephant in the room China does not want mentioned.

Staff believe that the renminbi remains substantially below the level that is consistent with medium-term fundamentals.

Interestingly, the IMF has put China's objections in the text, instead of their own specifics. Still currency manipulation is a key finding from the IMF report.

Over the weekend a Spanish bank, Cajasur, was seized. This is a large Spanish bank with $23.9 billion or 0.6% of Spain's assets.

Now the IMF is gunning for Spain and it looks like they are after.....their pension system and wages. From the IMF press release:

A dysfunctional labor market, the deflating property bubble, a large fiscal deficit, heavy private sector and external indebtedness, anemic productivity growth, weak competitiveness, and a banking sector with pockets of weakness. Ambitious fiscal consolidation is underway, recently reinforced and front-loaded. This needs to be complemented with growth-enhancing structural reforms, building on the progress made on product markets and the housing sector, especially overhauling the labor market. A bold pension reform, along the lines proposed by the government, should be quickly adopted. Consolidation and reform of the banking system needs to be accelerated.

The EU is also calling for Spain to modify it's pension system by raising the retirement age and scaling the benefits. The IMF is zeroing in on Spain's labor markets. So why exactly are they doing this and why are workers supposed to be stuck with the housing bubble and derivatives bill as sovereign nations become mired in debt?

Currencies of a number of emerging Asian economies remain undervalued, substantially in the case of the renminbi,” the IMF said in the report. Renminbi is a name for China’s currency, a denomination of which is the yuan. It’s essential for China to address excess demand pressures by reining in credit growth and allowing exchange-rate appreciation - IMF

The above is quoted by Bloomberg in the IMF press conference on their World Economic Outlook report.

Additionally the IMF said debt laden countries should let their currencies depreciate:

Buried in the article IMF warns wealth nations of debt is this gem:

The I.M.F.’s staff concluded in a report last summer that the renminbi was “substantially undervalued, ” and that this was contributing to China’s large trade surpluses in recent years. But China has blocked the release of that report, a prerogative of the I.M.F.’s member countries, although most allow the release of the I.M.F. staff’s reports on their economies.

China didn't like the IMF call out their currency manipulation so they bury the report? Gets even better. Be prepared for a propaganda war due to a statistical anomaly, (really, who does trust official Chinese statistics on their economy?), China will report a trade deficit: