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Euro crisis and global downturn
Two latest forecasts, one by the UN and another by the IMF, warn of the threat of global downturn and recession in both 2012 and 2013. Unlike the IMF estimates of 3.3 per cent, the UN forecasts show that the growth will be 2.6 per cent only in the current year 2012. The previous forecasts of UN and the IMF for this year were 3.6 and 3.9 per cent respectively. Both predict growth in developed capitalist countries will be 1.2 to 1.3 per cent only amidst very high unemployment and extreme income inequality. They also reveal that countries like China and India will now face economic slow down which have been the locomotive of the global economy, especially since the financial crisis of 2008. These projections, however, do not assess the likely severe adverse effect of steep rise in the prices of petroleum products recently due to increased tensions in the Iranian Peninsula.
Nonetheless, there is broad consensus that despite abrupt withdrawal of fiscal stimulus and bail-outs playing some role in dampening the growth, the major culprit has been the Read more…
The United Nations Wants To Crash The World Economy In Order To Save The Environment
The United Nations says that the earth is in great danger and that the way you and I are living is the problem. In a shocking new report entitled, “Resilient People, Resilient Planet: A Future Worth Choosing” the UN declares that the entire way that we currently approach economics needs to be changed. Instead of focusing on things like “economic growth”, the UN is encouraging nations all over the world to start basing measurements of economic success on the goal of achieving “sustainable development”. But there is a huge problem with that. The UN says that what we are doing right now is “unsustainable” by definition, and the major industrialized nations of the western world are the biggest culprits. According to the UN, since we are the ones that create the most carbon emissions and the most pollution, we are the ones that should make the biggest sacrifices. In addition, since we have the most money, we should also be willing to finance the transition of the developing world to a “sustainable development” economy as well. As you will see detailed in the rest of this article, the United Nations basically wants to crash the world economy in order to save the environment. Considering the fact that the U.S. and Europe are in the midst of a horrible economic crisis and are Read more…
47 Signs That China Is Absolutely Destroying America On The Global Economic Stage
Have you ever watched a football game or a basketball game where one team dominates the other team so badly that calling it a “blowout” would be a huge understatement? Well, that is what China is doing to the United States. China is absolutely destroying America on the global economic stage. Once upon a time, the Chinese economy was a joke and the U.S. economy was the most powerful the world had ever seen. But over the past couple of decades the U.S. economy has decayed and declined while the Chinese economy has skyrocketed. Today, China makes more steel, more automobiles, more beer, more cotton, more coal and more solar panels than we do. China has the fastest train in the world, the fastest computer in the world and they export twice as much high-tech equipment as we do. In 2011, our trade deficit with China was the largest trade deficit that one nation has had with another nation in the history of the world, and China has now accumulated more than 3 trillion dollars in foreign currency reserves. Every single day, we lose more jobs, more businesses and more of our national wealth to China. In technical economic terms, China has “taken us out behind the woodshed” and has beaten the living daylights out of us. Unfortunately, most Americans are so addicted to entertainment that they don’t even realize what is happening.
If you do not believe that China is wiping the floor with America in front of the rest of the world, just keep reading. The following are 47 signs that China is absolutely destroying America on the global economic stage…. Read more…
Water supplies may run out by 2030 in India: Study
Palmer Drought Severity Index, which assigns positive numbers when conditions are unusually wet for a particular region, and negative numbers when conditions are unusually dry. A reading of -4 or below is considered extreme drought. Regions that are blue or green will likely be at lower risk of drought, while those in the red and purple spectrum could face more unusually extreme drought conditions. (Courtesy Wiley Interdisciplinary Reviews, redrawn by UCAR. This image is freely available for media use.
Water supplies will begin running out in critical regions where they support cities, industries and food production — including in India, China and the Middle East — by 2030 due to over-extraction of groundwater, a scientist has warned.
“The world has experienced a boom in groundwater use, more than doubling the rate of extraction between 1960 and 2000 — with usage continuing to soar up to the present,” says Craig Simmons, director of the National Centre for Groundwater Research and Training (NCGRT).
A recent satellite study has revealed falling groundwater tables in the US, India, China, Middle East and North Africa, where expanding agriculture and cities have increased water demand.
“Groundwater currently makes up about Read more…
World Bank Head Warns Markets Heading to New Danger Zone
United States and Europe, coupled with a fragile economic recovery have pushed markets into a new danger zone, something that policymakers have to take seriously, the head of the World Bank said on Sunday.
(Photo: REUTERS / Tim Wimborne)
World Bank Chief Robert Zoellick gestures while speaking at the Asia Society’s annual dinner in Sydney August 14, 2011.
Speaking at the Asia Society dinner in Sydney, Australia, Robert Zoellick also said the global economy was going through a multi-speed recovery, with developing countries now the source of growth and opportunity.
“What’s happened in the past couple of weeks is there is a convergence of some events in Europe and the United States that has led many market participants to lose confidence in economic leadership of some of the key countries,” he said.
“I think those events combined with some of the other fragilities in the nature of recovery have pushed us into a new danger zone. I don’t say those words lightly … so that policymakers Read more…
Vladimir Putin: U.S. global economy ‘parasite’
The U.S. spends beyond its means and “lives like a parasite off the global economy,” Russian Prime Minister Vladimir Putin said on Monday, 1 August 2011.U.S. President Barack Obama said earlier in the day he had reached a deal with Republican and Democratic leaders to raise the nation’s debt ceiling by at least $2.1 trillion and avoid a default.
The proposed legislation is expected to be put to a vote in Congress later on Monday.
Speaking at a Russian political youth camp, Putin said the U.S. exists to build up its debt by relying on credit.
“It lives beyond its means, taxing the global economy with its problems and living like a parasite off the global economy and the monopoly of the dollar,” he said.
At the same time, the Russian head of government admitted that in the present day situation the United States took a “balanced” decision as a possible default would also have affected the global economy, which would have been “no good at all,” he concluded.
Doing The Global Currency Shuffle
In mainstream financial circles, the concept of a global currency is often spoken of only with an atmosphere of caution. It is approached always in hypothetical terms. It is whispered of as some far off dream; a socio-economic moon landing in the far reaches of fiscal space. Perhaps in 2015, or 2020, or maybe 2050, but certainly never just over the horizon, or right around the corner posing as an innocuous trade asset created over 40 years ago and used only on rare occasions. Unfortunately, the development of a centralized global security representing the creation of a supranational economic body is much closer than many would care to admit…
The most common argument made in the mainstream against a global currency taking shape is the Read more…
The World Says China Will Overtake America
In the past decade, anti-Americanism grew around the world. This was in response to concerns about the unchecked global power of the U.S., when it invaded Iraq in the face of very wide international opposition. In sharp contrast, today America is seen as on its way to losing its status as the dominant global superpower.IMF chief calls on US to raise borrowing limit
WASHINGTON — The International Monetary Fund’s new chief foresees “real nasty consequences” for the U.S. and global economies if the U.S. fails to raise its borrowing limit.
Christine Lagarde, the first woman to head the lending institution, said in an interview broadcast Sunday that it would cause interest rates to rise and stock markets to fall. That would threaten an important IMF goal, which is preserving stability in the world economy, she said.
The U.S. borrowing limit is $14.3 trillion. Obama administration officials say the U.S. would begin to default without an agreement by Aug. 2.
“If you draw out the entire scenario of Read more…
China drought ignites global grain supply concerns
A prolonged drought in China could hit grains output in key growing regions, further squeezing global supplies and putting upward pressure on prices, but plentiful domestic wheat stocks will act as a cushion and keep import volumes low.
Analysts are closely watching the weather in China, warning any further supply shocks in the grain markets would fuel a further rally in U.S. corn and wheat futures, already stoked by harsh crop weather in the United States and Europe.
“Parts of China have been too dry and if we did see crop failures in that part of the world they are going to look to the global market for supplies,” said Luke Mathews, a commodity strategist with Commonwealth Bank of Australia in Sydney.
“They are going to be looking to North America and Europe and there is significant amount of concern whether those particular countries will be able to satisfy those needs.”
Chicago Board of Trade corn has climbed 80 percent since the start of May last year, while wheat has risen around 50 percent. Last week alone corn and wheat jumped more than 10 percent on expectations of a global squeeze in supplies.
CROP CONCERNS & TIGHT GLOBAL SUPPLIES
Timely corn seeding is crucial for optimal yields needed to replenish U.S. supplies that are projected at the lowest level in 15 years amid strong demand from livestock feeders, ethanol makers and exporters.
About 80 percent of the U.S. corn crop has been planted, according to the U.S. Agriculture Department, but showers this week are expected to bring the final corn seedings to Read more…
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