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Global economy's foundations are weakening, one by one collapsing towards great worldwide depression of 2012-20
First it was America, then Europe and now Aisa. One by one, the legs of global economy are getting fractured. It may lead to a catastrophic depression from 2012 through 2020.
Already clobbered by Europe's debt crisis, the world now risks being hurt by slowdowns in its economic powerhouses - US, EU, China, and India.
The gravest of all fear is Europe and its mega debt crisis. By mid-June, Greek voters are expected to reject the terms of a $170 billion bailout — which called for painful budget cuts — and abandoning of the euro.
The problem of Greece is expected to spill over into Spain, Italy, and France. German economy can start reeling. UK and US are already very weak. US federal debt has reached 70% of its GDP, unprecedented since the end of second world war.
China's economic growth will suffer an 8 percent rate in the April-June quarter. That's high by Western standards, but it would be the weakest growth for China in nearly three years.
India is suffering an even sharper slowdown and Indian government is in a state of total denial. Its economic growth slowed to a 5.3 percent annual rate in the January-March quarter, the lowest in nine years. The debt, balance of payments, and foreign exchange reserves are at horrible levels. Output from India's factories has declined. Its consumers have seen inflation — which has averaged 9.2 percent a year since the start of 2010 — devour their wages.
India and China's biggest problem is unemployment in educated and uneducated population. The debt of average Indian and Chinese have skyrocketed in the last fifteen years.
In Brazil, the economy practically stalled in the first quarter of 2012. It grew at just a 0.2 percent annual rate from the final three months of 2011, the government sources said Friday.
As oil prices fall, Russian and Middle Eastern economies will also collapse. That will lead to deflation led severe world depression between year 2012 and 2010.
WORLD ARTICLES
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