Global economy at the tipping point

[Forever Sunshine]

Europe is heading for recession. China is battling its own economic demons. And with the United States also facing problems at home (9% unemployment anyone?), it's hardly in a position to help.

Without a white knight to step in and save the day, will we all go down together?

"The global economy has entered a dangerous and uncertain phase," cautioned International Monetary Fund Managing Director Christine Lagarde this morning in Beijing.

money.cnn.com/2011/11/09/news/international/global_economy/index.htm?hpt=hp_t2

[PK Bucko]

will we all go down together?

We could, but I don't think we will. It's important for our (U.S.) politicians to learn from the mistakes that have happened in Europe and England. It seems apparent that we're heading down the same road as the U.K., Greece, Italy and others but it can be stopped. However, it does take some political will power that is sorely lacking in D.C. currently.

[Royston Vasey]

Hello PK Bucko,

.....heading down the same road as the U.K., Greece, Italy and others.....

I think you're reading the UK's position wrongly, PK. The UK is in no way in a similar boat to Greece and Italy, primarily because the UK has the ability to repay its debts without requiring a cap-in-hand-type bailout. Also, I think America is in a dodgy position because its own deficit, as you say, is not being properly addressed by your politicians (read 'President'). After all, the UK does not owe the Chinese hundreds of billions (trillions?) of pounds.


Go well.

[PK Bucko]

The UK is in no way in a similar boat to Greece and Italy, primarily because the UK has the ability to repay its debts without requiring a cap-in-hand-type bailout.

I can see why you thought that I'd lumped those problems together, but that was not my intent. I mentioned England because they are having their own financial problems and are now going throught the painful process of deciding which programs to cut and by how much. Their situation could be a good predictor of conditions in the U.S. again, if the suits in D.C. pay attention.

[Royston Vasey]

.....but that was not my intent.

Fair enough, PK.


Go well.

[Spellbound454]

Sure.. it looks like we are heading for a double dip world recession....and that effects everyone.

Some are saying the Eurozone is breaking up...but they are normally UKIP exponents so have an ulterior motive for the speculation.
Greece will almost certainly default and they will have to accept tough austerity measures or face expulsion.
As for Italy Im not too sure what exactly is wrong with their economy...they have a new president so lets hope he can keep them out of trouble.

The UK have a plan for deficit reduction and although there are contingencies in place...it may still need to have an extended time frame.

I think we are all in for a bumpy ride tbh.