Wednesday, January 16, 2013

GLOBAL ECONOMIC FORCAST

http://www.moneynews.com/StreetTalk/World-Bank-Global-US-Brinksmanship/2013/01/15/id/471607 

this article tells me that all the economies with every around the world are stedily slowing down, which means there is less and less currency flowing as means of exchange, which will lead to continued currency printing all the way to the bottom. Europe Japan and  the USA will continue to print currency to keep the available cashflow in the markets because more and more people are paying of their debt instead of creating more debt (loans, credit cards etc..) (unknowingly the general public will cause a mild deflation in the world economies and the governments will continue to print even  more currency to sustain and grow their economy while they cannot do this forever something will inevitably have to give)

Before the global financial crisis hit in 2007, developing countries as a whole were chalking up growth rates of around 7.5 percent, with China growing at an annual rate of 10 percent.

 The World Bank forecast that Chinese growth would reach 8.4 percent this year, slowing to 7.9 percent by 2015.

In comparison, growth in advanced economies should reach a very weak 1.3 percent this year, weighed down by spending cuts, high unemployment and weak consumer and business confidence, the World Bank said. Activity should strengthen next year to 2 percent and 2.3 percent in 2015.

While financial markets were buoyed by measures adopted last year to address the eurozone debt crisis, the World Bank urged Washington to outline a credible medium-term fiscal plan that "avoids episodes of brinkmanship" over raising the country's self-imposed debt ceiling.

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