MercoPress. South Atlantic News Agency
US 'budget-debt ceiling' political clashes threaten slower world growth, warns OECD
The Organization for Economic Cooperation and Development, OECD, cut its forecast for global economic growth through next year and warned that fiscal and monetary policy decisions looming in the U.S. could derail the recovery. OECD said world economic output would expand 2.7% this year and 3.6% in 2014, down from May's forecast of 3.1% and 4%. Read full article
Comments
Disclaimer & comment rulesHey mates you forgot a healthy 4.7% growth in Argentina ha ha
Nov 21st, 2013 - 08:55 am - Link - Report abuse 0Time to get rid of the dollar anchor and start to use Yuans as a trade currency after all everyone are buying form china.
Ok, it all started in Freddie Mac, USA. But others were also borrowing way beyond pay-back.
Nov 21st, 2013 - 11:01 am - Link - Report abuse 0Who was going to feel the retribution first? The most vulnerable, of course. Which is why the European minnows got stuffed.
But eventually the USA was, and is, going to get the big hit.
It is coming like a slow motion movie sequence of a guy falling off the observation staging at the Grand Canyon.
It won't be like the Twin Towers - too quick, with worldwide vested interests helping to support the structure.
But the guy falling is 'personalised imagery', and it helps to remind us of the damage to the world-wide little man that the US banksters created.
You ask, “then why are these bank guys even richer today?”
”Well, . . . . . . . . . . . . . . . .
4.7% growth! Bahahaha
Nov 21st, 2013 - 11:06 am - Link - Report abuse 0Sure INDEC lies about inflation but for some reason it is telling the truth about growth!
But buy your Yuans Dany, no one is forcing you to use the US dollar or preventing you from buying or saving in Yuan. Why don't you save in Argentine Pesos though?
Feel free. No one is forcing you to live in the west or use dollars.
I wonder what will happen to the value of the $U.S. when the U.S. Fed reserve slows down it's bond purchases. I hope they do it slooowly.
Nov 21st, 2013 - 03:46 pm - Link - Report abuse 0“I wonder what will happen to the value of the $U.S. when the U.S. Fed reserve slows down it's bond purchases. ”
Nov 21st, 2013 - 07:41 pm - Link - Report abuse 01, They can't and won't slow down. There will be no tapering/reducing. If they do, it will be the end of “the zombie banks” (there is where the money ends, not in the real economy). Doomed if they stop, doomed if they continue, they are stuck, but the banksters are addicted to their “drug”...free money to speculate with and if they lose, more QE (code word for BAILOUT). 2, so far, the QE unlimited/infinity (forever), doesn't hurt the value of the US dollar, because the dollar is still in demand to buy commodities (Petro dollar, aka worlds reserve currency). Question is for how long? The value will only sink when FOREIGNERS decide that the game is over and don't need or don't want US dollars anymore for business, which will take time/some years. Who pays attention (you won't find that info on the lame mainstream media) already knows that some nations (Venezuela, Brazil, Argentina, Australia, India, Iran, Japan and many more nations in Continent Africa and Asia...even Saudi Arabia talks about it do sell their oil not for US dollars..imagine and amazing, even the UK held those talks with China to do more business in Chinese YUAN) already do business with each other wihout using the US dollar. Another example is are the BRIC nations, creating another “system” what will make the US dollar loses it's status of world reserve currency. It's a matter of time that it will happen, because the game already started. Only way out for wall street is war, the US dollar strength is backed by that is accepted by foreigners to do business plus the military might of the US. Problem is, and it's a reality, The US army is being burned out and the costs (visible and invisible costs before and after war) are rising.
@5 Fido Dido
Nov 22nd, 2013 - 06:07 am - Link - Report abuse 0Well I confess much of what you say is completely over my head, but I disagree with you about the tapering - I don't see how they can keep spending that much.
But my selfish concern is simply what effect this will have on the Aussie $ which has remained stubbornly high after dipping a few months ago. Our manufacturing sector has taken a big hit over the last few years partly because of how high the dollar has become, and stayed.
My ultimate concern though, is for the car industry, which is pretty much on life-support. We used to make some great cars that didn't look like anyone else's. It costs four times as much to make a car here than it does in Asia and our state and federal govts are sick of effectively subsidising the industry.
The smart economic decision, of course, is to simply let the industry sink if it can't support itself but not having cars that we built and reflect our culture leaves me feeling empty.
China Announces That It Is Going To Stop Stockpiling U.S. Dollarshttp://intellihub.com/2013/11/22/china-announces-that-it-is-going-to-stop-stockpiling-u-s-dollars/
Nov 23rd, 2013 - 02:59 am - Link - Report abuse 0@6 I don't see how they can keep spending that much.
I understand your point. But you have to or try to understand from their point of view (with their I mean those selfish scumbags who don't give a damn than about them self and for who they work for, the banksters, not the people..okay) that if they stop, it's finished, but of course they know (but they don't care) if they continue it will be game over anyway, because somebody else will stop it for them (read the link). The rest of the world is aware of it, it wants to move on and it is moving on because they already know that “US 'budget-debt ceiling' political clashes threaten slower world growth, warns OECD”..is bullcrap, cheap silly old propaganda from a dying meaningless organization in Paris.
@7
Nov 23rd, 2013 - 05:29 am - Link - Report abuse 0Thanks for providing the link. Very interesting information. At one point the USD was buying A$1.10 which was unprecedented. A few foreign govts had started to buy our currency instead and it was IMO over valued. The correction saw it drop to about 90c, but it has crept up again to 94/95c which I did not see coming.
If China does what the article you provided suggests they will I can't see how the USD will hold it's value - so which currency will investors put their faith in?If China does indeed stop placing artificial controls on the value of their currency I wonder if the Yuan will become the world's reserve.
It isn't clear to me though, that the motivation for doing so is what they consider to be good economic policy, or simply the Chinese craving for power and prestige.
I guess I better get that Les Paul while I can still afford it.
@Heisenbergcontext
Nov 23rd, 2013 - 10:18 am - Link - Report abuse 0The motivation is quite clear Chinese currency becoming the replacement of the dollar will provide to them the same privileges that US had enjoyed since 1970.
They will be able to print money to keep expanding Chinese economy without inflation and controlling as their wish commodity and oil prices.
So here will apply the same tale from some American politician that said something like “Printing US dollars is our business consequences are yours”
So we are going to see in near future a US behaving like they used to call “Bananas Republics” that always were struggling with external debt, recession, inflation, stagnation, and internal social problems, etc.
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