Reuters: World Bank Slashes Global GDP forecasts, Outlook Grim

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EDITOR’S COMMENT: As long as we pretend that our mission in life is to protect the Banks that did this to us, these forecasts will  be cut over and and over again. We have a cancer growing on our world economy. It is growing and still proliferating as central bankers and world leaders fail to deal with the essential truth that the derivatives were defective, that the transfer of wealth was an illusion, and that the ONLY remedy that will work is to correct the fraud in broad programs to achieve restitution to the people, countries, states, towns and cities that were cheated by Wall Street. If the U.S. military was not so strong, it would have been called an act of terrorism and treated as such by all countries around the globe.
Meanwhile central bankers around the globe and financial leaders are quietly hedging their bets by creating alternative currency exchange — in preparation for the day that the almighty U.S. dollar fails to live up to its “reserve” status.
The average man on the street sees it, spawning numerous movements of people who are coming together in common goals and common causes to break the hold that Banks have on our lives through manipulation of our governments.
World Bank slashes global GDP forecasts, outlook grim

Wed, Jan 18 09:03 AM EST

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BEIJING/WASHINGTON (Reuters) – The World Bank warned developing countries on Wednesday to prepare for the “real” risk that an escalation in the euro area debt crisis could tip the world into a slump on a par with the global downturn in 2008/09.

In a report sharply cutting its world economic growth expectations, the World Bank said Europe was probably already in recession. If the euro area debt crisis deepened, global economic forecasts would be significantly lower.

“The sovereign debt crisis in the euro zone appears to be contained,” Justin Lin, the chief economist for the World Bank, told reporters in Beijing on Wednesday.

“However, the risk of a global freezing-up of the markets and as well as a global crisis similar to what happened in September 2008 are real.”

The World Bank predicted world economic growth of 2.5 percent in 2012 and 3.1 percent in 2013, well below the 3.6 percent growth for each year projected in June.

“We think it is now important to think through not only slower growth but sharp deteriorations, as a prudent measure,” said Hans Timmer, director of development prospects at the bank.

The World Bank said if the euro area debt crisis escalates, global growth would be about 4 percentage points lower.

It forecast high-income economies would expand just 1.4 percent in 2012 as the euro area shrinks 0.3 percent, sharp downward revisions from growth forecasts last June of 2.7 percent and 1.8 percent, respectively.

It cut its forecast for growth in developing economies to 5.4 percent for 2012 from its previous forecast of 6.2 percent, saying expansion in Brazil and India and to a lesser extent Russia, South Africa and Turkey, had slowed already.

It saw a slight pick up in growth in developing economies in 2013 to 6 percent. But the report said threats to growth are still rising, suggesting the outlook remained highly uncertain.

“The downturn in Europe and weaker growth in developing countries raises the risk that the two developments reinforce one another, resulting in an even weaker outcome,” it said.

It also cited failure so far to resolve high debts and deficits in Japan and the United States and slow growth in other high-income countries, and cautioned those could trigger sudden shocks.

SEE ENTIRE ARTICLE ON REUTERS

 

7 Responses

  1. All we have to do is convice Google wikipedia etc.. of our just cause.

    http://latimesblogs.latimes.com/technology/2012/01/sopa-blackout-sopa-and-pipa-lose-three-co-sponsors-in-congress.html

  2. oops- i meant reuters er…rhoiders like in hemor-rhoid-ers

  3. FUCK the IMF& world bank …oh yea …ruters too..

  4. @Iwantmynpv,

    Joan of Arc… that’s me! 🙂

  5. @ enraged – here, here!

  6. Up and down, up and down, up and down.

    Fix the economy here and the rest will follow. How? Stop foreclosures. Allow investors to lose what they gambled (investing is, indeed, a gamble…). Confiscate what banks have received and stolen and redistribute it by investing it into infrastructures, education, research. Jobs will be created.

    For each bank dismantled and job losses in Wall Street, there will be that many jobs created by credit unions and smaller sized financial institutions in local communities.

    Go back to a human scale. No more Walmarts. Invest in small businesses.

    Last but not least, throw all the culprits in jail and ban them, once and for all, from any financial-related job, Harvard diploma or not.

    What is so difficult to understand about that?

    Either way, that is exactly how it will end. Now, if we do what is necessary, or later, if we wait for it to work itself out.

  7. Armageddon is coming. Find a cave someplace!!!

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