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Five years after the financial crash, global economy continues to weaken

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In the immediate aftermath of the September 2008 eruption of the global financial crisis, the claim was made that so-called “emerging markets,” including China, India and Brazil, would be able to decouple from the major capitalist economies and provide a new foundation for growth in the world economy as a whole.
That piece of economic fiction has been exposed. Not only are the “emerging markets” unable to provide a boost to growth, they are rapidly becoming a new source of global instability.

Last week, the Wall Street Journal cited a report from Bridgewater, the world’s largest hedge fund, which noted that the major economies, including the US, Europe and Japan, were now adding more to world economic growth than the emerging nations.
That result, however, does not point to a revival in the advanced countries. Rather, it signifies the weakening of the global economy as a whole. Growth rates in all the major economies remain well below the levels attained in 2007-2008, with no prospect of the pre-crisis rates ever being seen again.
A survey of economists released by the Federal Reserve Bank of Philadelphia found that they expected the US economy to grow by only 1.5 percent in 2013, well down from their prediction of 2.0 percent in May. Growth will not pick up in the longer term, according to a report by a leading JPMorgan economist, which found that the potential growth rate for the US economy, which used to be 3.5 percent, had halved.

The situation is even worse elsewhere. Europe continues to stagnate, with the euro zone economies growing by only 0.3 percent in the June quarter, which translates to an annualised rate of 1.1 percent. The return to positive growth, after six consecutive quarters of contraction, by no means signifies that Europe has “turned the corner.” The euro zone economy as a whole is still 3 percent smaller than it was in 2008. Most analysts consider that an annual growth rate of at least 2-3 percent over the next three years is needed to start to bring down unemployment, and there is no prospect of that.

The Wall Street Journal commented that it was “hard to see how Europe can reach escape velocity.” The newspaper continued: “Among the brakes on the recovery: continuing austerity, lack of affordable bank loans, rising unemployment and weak household incomes, and lack of investment by companies that are still operating well below capacity.”

http://www.wsws.org/en/articles/2013/08/19/pers-a19.html
 
China is taking steps to decouple it self from the larger economy. They've started to look internally and China is developing a significant middle class.

America on the other hand ...let's put it this way ....look at the UK to see what America will be like in a few decades. If you say like many have say when they hear this prediction ...i.e. "People have been saying this for years"....I have this.

At least lets agree on this ....no future generation will ever again see a more vibrant American economy ...than somebody in their 30's have already seen.

4% unemployment ...will be a thing of the past ....10% will be the norm. The American middle class will be a mirage ....with millions living on the edge ..toppling after the first job loss or major accident.
We certainly won't churn out engineers and scientists like we have in the past.

And you tell me ...can you ever see an America with the will to build a major rail system today like we did with the NY subway for example!! It will never happen ...that economic drive is dead!!
 
China is taking steps to decouple it self from the larger economy. They've started to look internally and China is developing a significant middle class.

America on the other hand ...let's put it this way ....look at the UK to see what America will be like in a few decades. If you say like many have say when they hear this prediction ...i.e. "People have been saying this for years"....I have this.

At least lets agree on this ....no future generation will ever again see a more vibrant American economy ...than somebody in their 30's have already seen.

4% unemployment ...will be a thing of the past ....10% will be the norm. The American middle class will be a mirage ....with millions living on the edge ..toppling after the first job loss or major accident.
We certainly won't churn out engineers and scientists like we have in the past.

And you tell me ...can you ever see an America with the will to build a major rail system today like we did with the NY subway for example!! It will never happen ...that economic drive is dead!!


if china is doing such i say let them,watch them colapse.no country ever got rich or pregressed by trading with themselves,they expand by trading what their country has abundand of for what other countries have and they dont.

if you want to go by the principal of ignoring the larger economy and looking internally,look at the tarriff war during the great depression that helped noone and hurt everyone,or better yet feudalism,which was an entire economic and social structure designed to be self sufficient from all other countries,and its ideas only prospered because of the constant wars in the middle ages making trade difficult to impossible.
 
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