Sunday, December 18, 2011

Identified three main threats to the global economy

According to experts, the global economy could derail the oil, money and debt problems if the economic recovery will not be undermined by a jump in oil prices today, in the near future it is likely to end large-scale debt crisis, says Case. Oil. Saudi Arabia recently, despite the reluctance of OPEC as a whole intervene in the market, has increased its production. If she and other countries will have to completely replace the supply of Libya, OPEC spare capacity will remain roughly another 3 million barrels a day. But the spread of the crisis to other countries may lead to price spikes. If the Middle East crisis disrupt production in Saudi Arabia, the prices may jump another vysh. OpisanieDolgi. Generated by the crisis, the threat of sovereign defaults, too, remains urgent. History shows that the banking crisis, should government debt crisis, says Harvard University professor Kenneth Rogoff, amounting to a database of financial crises in the XIII century. He believes that it will be so this time, though not taken to say when it will happen. U.S. with their duty to 93,2% of GDP in fiscal year 2010 are in an unstable position. Indicators of Greece are incredible. In Portugal, they are very high, Ireland looks like Iceland. Hungary, Ukraine, Romania, the Baltics, especially Latvia, - they are all very vulnerable. They receive considerable assistance from the IMF, but it can not continue indefinitely, Hungary, Ukraine, Romania, the Baltics, especially Latvia, - they are all very vulnerable. They receive considerable assistance from the IMF, but it can not last forever "- indicates Rogoff. Debt problem simply moved, private debt have turned to the state, explains the professor of the Polytechnic Institute of New York University Nassim Taleb. Governments have always used inflation to devalue the national debt and ease its repayment, indicates David Fuller, editor of investment newsletter Fullermoney. Faber and Taleb believes that in the long term the U.S. is waiting for rising inflation. In Britain, by the way in which public debt is 76.7% of GDP, it is already more than 4%. Money. Today, the crisis was not only a system of public finance, but also the financial system. Giant money issue, which lasts more than a year, covering more than one country devalues ??Paper Money Giant monetary emission, which lasts more than a year, covering more than one country devalues ??paper money, need to reform the global monetary system, experts say. Previous global crises have led to such reforms. As an alternative to paper money in the last decade have increasingly offered gold. Gold, whose price has been growing for 10 years, has become an alternative monetary asset, admitted late last year, World Bank President Robert Zoellick. Search Investor alternatives failing currencies of developed economies suggests the need for reforms that would ensure economic growth and balance the global economy. The world is moving to a new system in which the dollar is just one of the major reserve currencies with flexible exchange rates, "Zoellick said. Recall that Ukraine placed in the top 18 countries at risk of default. The corresponding list of such countries released the American edition Business Insider.

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