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Showing posts from August 20, 2011

ECONOMIC POLICY BY CENTRAL BANKS IS HITTING A WALL AROUND THE WORLD AS ECONOMIES CONTINUE TO STALL...

Overview: Monetary Policy Alone Will Not Save the World Economy


By Michael Manetta
Aug 19, 2011 10:51:00 AM | Last Updated

With U.S. growth at stall speed and the eurozone (EZ) crisis deepening, developed market (DM) central bankers are taking a decided turn toward monetary easing in an effort to once again avoid the perils of a debt-deflation cycle.


Emerging market (EM) central banks, many of which still face elevated inflation risks at home, will delay or abort tightening cycles but will resist monetary easing in the near term as they balance on the horns of the policy trilemma, seeking to retain export competitiveness without stoking inflation.


Over the medium term, continued balance-sheet stress and fiscal austerity in DMs, as well as an impending growth slowdown in China, will push central banks to find new ways of stimulating demand, likely ending the predominant role of inflation-targeting in the global monetary regime.


Figure 1: DM and EM Growth and Headline Inflation, Weighted b…

NOURIEL ROUBINI HAS BEEN PREDICTING SINCE APRIL THAT CHINA WILL HIT THE WALL IN 2013: " CHINA WILL BE POISED FOR A SHARP SLOWDOWN"...

China's Unbalanced, Uncoordinated and Unsustainable Growth Model


By Nouriel Roubini

Apr 11, 2011 11:40:00 AM | Last Updated



EXECUTIVE SUMMARY

I recently took two trips to China just as the government launched its 12th Five-Year Plan to rebalance the long-term growth model. 
My meetings deepened my own impression and the long-standing RGE view of a potentially destabilizing contradiction between China’s short- and medium-term economic performance: The economy is overheating here and now, but China’s overinvestment will prove deflationary both domestically and globally. 

Once increasing fixed investment becomes impossible—most likely after 2013—China will be poised for a sharp slowdown

Instead of focusing on securing a soft landing, policy makers should be worrying about the brick wall growth will hit in the second half of the quinquennium, when the growth model will break.

 A number of local scholars close to policy circles agree that this is the biggest challenge of the next few years…

NO MATTER WHAT "YARD STICK" YOU USE...USA IS STILL THE WORLD'S LARGEST ECONOMY...BY AN IMPRESSIVE AMOUNT...ALMOST ONE FIFTH OF THE ENTIRE PLANET !!!...

List of countries by GDP (nominal)
From Wikipedia, the free encyclopedia


World map showing nominal GDP of countries for the year 2010 according to the IMF.




Legend: (in billions of U.S. dollars)
> 1,000
200-999
10-199
< 10
no data


This article includes a list of countries of the world sorted by their gross domestic product (GDP), the market value of all final goods and services from a nation in a given year. The GDP dollar estimates presented here are calculated at market or government official exchange rates.




The figures presented here do not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange ratesof the country's currency

Such fluctuations may change a country's ranking from one year to the next, even though they often make little or no difference to the standard of living of its population. Therefore these figures should be used with caution.

Comparisons …