Europe on course to crash?

Economic Crisis: Europe on the brink – The Week
How a debt problem that began with Greece now endangers the entire Eurozone & US.

It's so bad that it could drag down the global economy, and tip the U.S. back into recession. It might also mean the beginning of the end for the euro, the common currency of 17 countries and 330 million people. The debt crisis began in one corner of the continent — Greece — and has spread like an epidemic, threatening banks and investors and undermining the creditworthiness of other European countries. Bailed out last year by the EU to the tune of $140 billion, Greece enacted tax increases and deep public-sector cuts, outraging much of its population. But the cuts didn't end the crisis, and in some respects backfired. Greece's unemployment rate has soared to 16 percent, and its economy is on track to shrink 6 percent this year. As a result, the country's government has falling revenues, and less money with which to pay off its debt, which stands at 160 percent of GDP and climbing. (In comparison, U.S. debt is 100 percent of GDP.) So in July, Greece went back to the EU for a second bailout, of $157 billion. But the fed up EU now says it won't put up more money unless Greece makes more radical cuts to government spending.

Can Europe's debt crisis be contained ? - TheLookout, Zachary Roth 27 Sep 2011

Trader warns Eurozone will crash

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BBC interviews Alessio Rastani – YouTube 26 Sep 2011 
"Market is toast". Governments cannot save economies; Goldman-Sachs rules the world.

Max Keiser: Alessio Rastani telling the truth; Bankers don't care about Economy – RT 29 Sep 2011

IMF: insufficient funds to bail out all if debt crisis worsens

IMF warns on funding levels if crisis worsens – BBC

The International Monetary Fund (IMF) has warned it may not have enough money to bail out larger eurozone countries if the debt crisis were to spread.

IMF: US economy will be weak for years

IMF : US Economy may be weak for years to come - Andrew Beatty, AFP
WASHINGTON — The International Monetary Fund on Tuesday warned the US economy could remain weak for years to come, describing a recovery stalled amid unrelenting headwinds and in dire need of a push from government.

The Washington-based fund slashed its US growth forecasts for this year and next, while warning of the need for more government stimulus in the short-term as well as a credible longer-term plan to cut spending.

Economic Armageddon and you

This animated video explains inflation, stagflation, recession and more. (uploaded YouTube Jul 1, 2011)

Greece on path to default & leaving Euro

After contracting in 2009 & 2010, Greece’s GDP fell another 7% in Q2 2011. Unemployment is near 900,000 and projected to exceed 1.2 million, in a population of 11 million – that’s about 10.9%.

The austerity program has failed to meet its own targets for budget deficits : the target for 2011 was about 7% of GDP, but instead is likely to hit 10%. The Debt/GDP ratio could reach 200% in 2013, up from 115% in 2009.

Measures proposed by the government are not likely to succeed & probably will intensify the recession instead – and spark stiff political opposition.

Greece must default & quit Euro : The real debate is how – Costas Lapavitsas, Guardian
Desperate bid to keep EU corpse alive - Mail online

Banks cause rise in food prices

How Banks cause World Hunger – HuffPost

Banks and other financial speculators are increasingly “betting on food prices in financial markets,” according to this infographic from the World Development Movement. Food prices now account for 70 percent of total expenses in some of the world’s poorer households, hitting a record high in February. Looking forward, the OECD estimates that over the next decade cereal prices will rise 20 percent. That’s still less than meat prices, which are expected to jump by nearly a third. 

China cannot grow in isolation

Chinese Premier says country cannot grow in isolation – BBC

Chinese Premier Wen Jiabao has said the country cannot grow in an isolated way, and it will look to develop global and domestic growth.

… Wen said that China would now focus on boosting its domestic demand, and this in turn would help the global economy.