Invest Intelligence When It Realy Matters
October 2011 Global Economic Summary
The incompetence of Washington was most recently demonstrated by the debt ceiling drama. Now the dog-and-pony show staged by the ECB, EU and IMF has added to waning consumer and investor sentiment across the globe to create a crisis in confidence.
The timing of this charade could not have been worse, as this unnecessary turn of events has hit the global economy during a period when it was predetermined to weaken on its own force due to the depletion of stimulus funds. As a result of these seemingly intentional destructive actions, most of the economic gains made as the result of tax subsidies and bailout funds since the financial crisis of 2008 have been erased.
Meanwhile, substantial downside risks to global growth remain. Notably, a default of Greek sovereign debt appears imminent. Finally, the risk of significant shocks to Brazil and China has increased. At the very least, Brazil is likely to face more problems in 2012, and possibly thereafter depending on several variables. I have been warning about the risks to emerging economies for some time now.