OECD: Europe's Debt Crisis Could Push The World Into Recession

European Debt Crisis A Bigger Global Threat Than US Fiscal Cliff, Says OECD -- The Guardian

Report says 'intensified euro area crisis' could destroy growth in Europe and also wipe out US recovery, causing recession

Europe's debt crisis remains a far bigger threat to the world's economy than the "fiscal cliff", according to the Organisation for Economic Co-operation and Development (OECD).

In its latest twice yearly report the OECD warned the world's major economies could all got back into recession if euro-zone and US policy makers fail to tackle their fiscal crises. The organisation believed an escalation in the ongoing European crisis poses the biggest threat to global economies and could drag Europe into a deep recession in the next two years and the US along with it.

Read more ....

Update: Global recovery under threat, says OECD -- BBC

My Comment: I concur with this analysis. The U.S. debt can still be managed (if they do not continue spending at the rate that they have for the past decade) .... but for many European countries (Greece, Spain, etc.) .... that is no longer possible. They owe too much money, and many no longer have the political will to pay it off.

More Evidence That The U.S. Is In Decline?

Scandinavian Countries Top The List Of World's Most Prosperous Nations... But U.S. Drops Out Of Top Ten For The First Time -- Daily Mail

* Norway has topped the list of the world's most prosperous countries, followed by Denmark and Sweden in the annual rankings
* The U.S. has dropped out of the Legatum Prosperity Index's top ten for the first time to 12th position
* The UK has kept its place 13th in the global index

Scandinavian countries top the list of world's most prosperous nations... but U.S. drops out of top ten for the first time

Norway has topped the list of the world's most prosperous countries, followed by Denmark and Sweden in the annual rankings
The U.S. has dropped out of the Legatum Prosperity Index's top ten for the first time to 12th position
The UK has kept its place 13th in the global index

Read more ....

My Comment: My ammo for those who believe the U.S. is going the wrong direction. Their website is here.

IMF: High Risk Of A Global Slump

The IMF's UK forecast was cut more than expected Photo: Reuters

IMF Sees ‘Alarmingly High’ Risk of Deeper Global Slump -- Bloomberg

The International Monetary Fund cut its global growth forecasts as the euro area’s debt crisis intensifies and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.

The world economy will grow 3.3 percent this year, the slowest since the 2009 recession, and 3.6 percent next year, the IMF said today, compared with July predictions of 3.5 percent in 2012 and 3.9 percent in 2013. The Washington-based lender now sees “alarmingly high” risks of a steeper slowdown, with a one-in-six chance of growth slipping below 2 percent.

Read more ....

More News On The IMF's Forecasts For The Global Economy

IMF cuts growth forecast for UK in "gloomier" global outlook -- The Telegraph
I.M.F. Lowers Its Global Growth Forecast -- New York Times
IMF cuts global growth forecast; prods Europe, U.S. -- Reuters
IMF: Slow growth, big risks -- CNN
IMF: US 'fiscal cliff' would set back world economy -- AFP
IMF Reduces Latin American Growth Forecast on Global Downturn -- Bloomberg Businessweek
IMF cuts China, India, emerging Asia growth forecasts -- Reuters
IMF cuts growth outlook for Latin America on global weakness -- FOX News/Reuters

Here Comes The Global Recession

Global Slowdown 'Becoming A Genuine Possibility,' As Europe, China Decelerate Further -- NBC

LONDON - The euro zone's economic woes accelerated last month and China's slowdown looked likely to extend to a seventh quarter, surveys on Wednesday showed, while the United States proved the bright spot with better-than-expected news on services and jobs.

Purchasing managers indexes (PMIs) suggested the aggressive actions taken by the world's central banks over the last two months have yet to convince consumers to start spending again.

The chances of the euro zone in particularly seeing growth again before next year has dwindled.

Falling new orders and more layoffs marked a worsening decline for euro zone companies, the PMIs showed, while growth of China's normally robust services weakened to an almost two-year low last month.

Read more ....

My Comment: As I have said on many occasions .... too much debt and too much spending coupled with no political will to correct the situation has helped to destroy a number of European economies (Greece, Spain, Italy, etc.). In Asia we see other bubbles starting to burst, and in the U.S. .... here comes the huge tax increases and sequestration in 2013. Yup .... the global slowdown is coming .... but fear not .... the IMF's chief economist assures us that the global economy will start to recover in 2018!!!!!