The global economic recovery has not reached the ninth inning yet, according to economist Nouriel Roubini.
The New York University economist gained notoriety when he accurately predicted the collapse of the 2008 global financial system while most economists where still enjoying the economic boom.
Mr. Roubini recently spoke at the annual Ambrosetti Forum at Lake Como, Italy where he warned of a possible double-dip in the US economy as well as in many European countries and Japan.
The European and US economy expect positive growth but at a slow pace while Japan’s growth in the second quarter barely reached 0.4%.
China and India continue to grow at a steady pace but such may not be sustainable for much longer. The Chinese economy is very dependent on exports and relies on the purchasing power of American and European consumers to continue to offset their manufactured goods.
We reported earlier that our global economy is growing uneven with a heavy tilting towards the east, and such can only continue if and when a certain equilibrium and balance is found between east and west.
Mr. Roubini’s words are cautionary to all and should not be viewed as a doomsday prediction but rather as an accurate view on what may occur if the US economy does not address the issues at hand that stand in its way of sustainable growth. The continued slump in the housing market, high unemployment rate and large deficit all hamper economic growth.
A solution to avoid a double-dip would be for the Federal Reserve to raise short term interest rates to 1%.
This would weaken the euro and therefore spur economic growth in Europe, and secondly it would strengthen Japanese exports by weakening the yen. If both currencies were allowed to trade at a reasonable parity with the dollar, euro/USD at 1.16 and yen/USD at 95-100, then we would bring a more balanced growth within the global economy.
A higher interest rate in the US would little to no negative effect on US growth; on the contrary, it would increase the purchasing power of consumers if and when combined with a responsible fiscal policy which is currently not the case.
If we want our global economy to move to the ninth inning of the crisis game, then the US should start hitting some homeruns.
Written by Nick Doms © 2010, all rights reserved.
Comments
this website is very good, you can go and see it
http://www.shoes4world.com/
Hi,Dear Ladies and Gentlemen, ( http://www.vipstores.net ) Here are the most
popular, most stylish and avant-garde
shoes,handbags,Tshirts, jacket,Tracksuit w
ect...NIKE ,JORDAN SHOES 1-24,AF,DUNK,SB,PUMA
,R4,NZ,OZ,T1-TL3) $35HANDBGAS(COACH,L V, DG, ED
HARDY) $35TSHIRTS (POLO ,ED HARDY, LACOSTE) $16
New to Hong Kong : Winter Dress
--- NHL Jersey Woman $ 30 ---**** NFL Jersey $20
--- NBA Jersey $ 18 ---**** MLB Jersey $ 30
--- Jordan Six Ring_m $30 ---**** Air Yeezy_m $ 45
--- T-Shirt_m $ 15 ---**** Jacket_m $ 30
--- Hoody_m $ 30 ---**** Manicure Set $ 20
as long as the new and old customers to buy the corresponding product on this site, both a gift, so stay tuned! !
( http://www.vipstores.net )
In America and other rich nations too many people are doing too little work. A Doctor in US even though sees ten times less patients than Indian counterpart and lives in 10 times better condition. So it is not recession but correction which cannot be prevented in this rapidly globalizing world. In national capital and US like city Delhi few doctors are doing Ultrasound scan in 2 dollars while American rates can be up to 250 dollars. Any American radiology or pathology technician can get the reports of patient done by a doctor based in developing country at 2 dollars per ultrasound scan rates in this highly computerized world with easiest data transfer systems. Rich nation’s economy is highly inflated overpriced and impractical supported by us by purchasing their highly overpriced machines and weapons and crude oil. Material cost of a F16 or stealth may be 10000 time less than their final prices. If crude oil is sold at solar passive thermal energy equivalent cost of LPG per MT will be 50 dollar per MT as against its current price of 350 dollars price of crude will also come at 10 dollars per barrel as against 80 . Cooling down of economy of rich nations is good for world and themselves otherwise they will consume entire conventional energy sources of world for heating their personal swimming pools for taking bath during winters or even during snowfall and will finish the world in which they are living.
Got something to say?
Examiner.com is looking for writers, photographers, and videographers to join the fastest growing group of local insiders. If you are interested in growing your online rep apply to be an Examiner today!