Spain may push Euro into crisis
The Spanish economy is many a times of Portugal or Greece , and it is now very close to the firing line. And the European Union does not have the kind of money required to support Spain. Germany is also reluctant to extend free cash to these rogue nations anymore.
Things have been complicated today by S&P which lowered the Anglo Irish bank to junk status. This in turn might push Spain towards bailout in the coming weeks or months at best. So get yourself ready to see a European crisis in the near term.
This time the Euro crisis seems to be heading for a real showdown.
Is US FED pushing US into long term recession
The US FED has now used the last available tool, i.e., of printing new US currency notes worth another 600 billion US dollars. The US FED move would result in cheap availability of the US dollars across every market in the world, and would be making exports out of US more competitive.
But the exports out of US is only of high value and high technology products which would anyway be exported, and over the long term it may get neutralized. What matters is that the US imports would become costlier and that would hurt the import tilted economy badly.
So there are a reasonably good number of analysts who are expecting this move to boomerang on the US economy in the medium term. Then it may lead the US into a long drawn recession / deflation situation like the being faced by Japan for the last several years.
Ireland ready to get help from Britain
Britain has offered help for the Ireland for its falling bank sector say the resources from Britain. Britain is ready to join hands with any euro-zone and IMF efforts in order to save Ireland. Ireland at present is suffering from the beleaguered Banking sector which needs to be saved immediately.
On Wednesday finance minister George Osborne said that Britain is ready to participate to save Ireland. The economic Affairs chief of Europe Olli Rehn stated that there is a bailout which is under discussion. There will be an important role played by the British to help Ireland to get out of trouble. The European commission and IMF have joined hands and announced a launch of an urgent mission to Dublin. Before the meeting with the European finance minister Osborne spoke to the reporters who were outside the conference.
Osborne said that though London is not present in the Euro zone it is present in the wider EU. So there is an national interest of Britain in the aid of neighbor Ireland stated the Osborne to the reporters. The closest neighbor of Britain is Ireland and is in the national interest of Britain to help Ireland. Though the Irish economy is being successful Britain is having a stable banking system which will help Ireland. So at present Britain is ready to support Ireland and stands for Ireland stated the Osborne to the reporters.
Read MoreChina set to increase dominance
The western world is always accusing China of keeping it’s currency value pegged at artificially low levels and subsidizing all the exports out of that country. But China seems to be doing nothing about it and even the western world continues to import billions of Chinese goods every month.
The Chinese dominance is only set to increase further given the interest rate hike carried out by China few days back. By increasing the bank interest rates, China will now be able to attract more private capital out of the Western world which in turn could make it easier for Chinese companies to fund their business better.
Japan unveils another stimulus worth 61 billion dollars
The Japanese economy continues to sink and the government is using every tool available to pull back the economy to growth. The Japanese central bank crashed the rates to near zero only few days back, and yesterday the government announced a 61 billion dollars stimulus plan as a last ditch effort to get back to growth.
Given the huge debt of the government , and the lowest rate of interest, experts feel that the Japanese economy might sink into deep recession if the world gets into a stagnation.
Second largest economy is still a developing economy
As we know the second largest economy is China which is developing still remains in the list of developing country. China is staying in the list of developing country as it is facing many challenges. Many challenges include alleviating poverty in some inner areas,population and other. From the past three decades China has been successful in growth rates and has a amazing economic success.
In-spite of all these China still remains a developing country said Bank President Robert B Zoellick. The poverty reduction and economic success has build up the economy of China said Zoellick who is going to visit China for a week. Zoellick described China economy in a interview with Xinhua News Agency. The tremendous changes in the past decades have taken place but yet there are some rural areas where poor people are present.
The rural areas don’t even have proper electricity said Zoellick in a interview. The World Bank estimate shows 208 rural poor in the country of China in the world after India.The people outside must know China even has poor people and need to recognize its conditions of a developing country. China must pay more attention in re balancing development domestically and balance the savings and consumption and increase the value added production.
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