UK - Eurozone Crisis Live

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We have National Debt Data's about the major OECD countries as below :ranger:


=> OECD countries with the highest National Debt in 2012 in relation to GDP

Japan 236.56%

Greece 170.73%

Italy 126.33%

Portugal 119.07%

Ireland 117.74%

United States 107.18%

Belgium 99.03%

France 89.97%

United Kingdom 88.68%

Spain 90.69%

Source: IMF, Worldwide; International Monetary Fund

"¢ Countries with the highest public debt 2012 | Statistic
 
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Euro-Zone Economy Plunges
February 14, 2013

The euro-zone economy plunged last quarter at its fastest pace in nearly four years, as weakening global activity and deep recessions along the currency zone's southern border gripped powerhouses such as Germany and France.

The report on gross domestic product from the European Union's statistics office highlights a key risk for the currency bloc as Europe's debt crisis enters its fourth year. Financial market conditions have improved markedly since last summer, due in large part to the European Central Bank's pledge to do "whatever it takes" to preserve the euro. But these gains haven't translated into new business activity.

Without growing economies, Spain and Italy will likely see government-debt burdens increase even as they undertake austerity measures such as higher taxes and reduced spending. That could revive doubts in financial markets about the sustainability of their finances.

GDP in the euro zone fell 0.6% in the fourth quarter compared with the third, according to the Eurostat report. That translates into an annualized decline of 2.3%, according to J.P. Morgan JPM -0.69% economist Greg Fuzesi. Economists had expected a 0.4% quarterly drop. It was the third straight GDP decline and fifth straight quarter in which the currency bloc failed to expand. For 2012 as a whole, GDP fell 0.5% from the prior year.

The report "brought a dismal end to a very difficult year for the euro zone," said Howard Archer, economist at IHS Global Insight. He expects GDP to slide another 0.2% this year.

The euro fell to a three-week low on the weaker-than-expected figures.

GDP in Germany, Europe's largest economy, fell 0.6% from the previous quarter on declining exports and investment, or 2.3% at an annualized rate. France, the bloc's second biggest, declined at a 1.1% annualized pace. Other large economies including Italy, Spain and the Netherlands also contracted.

Italy's GDP plummeted at a 3.7% annualized pace, a much sharper rate of decline than the third quarter. Spain's downturn also deepened. Portugal's GDP slid at a 7.2% rate in the final three months of 2012, double the third quarter's pace of decline.

Greek GDP contracted 6% compared with year-ago levels. Its statistics agency didn't provide a quarterly change, but Mr. Fuzesi estimates that GDP slumped 16%, at an annualized rate, from the third quarter. Greece's unemployment rate rose to 27% in November, a record.

ECB officials expect the euro zone to embark on a gradual recovery later in 2013, and aren't expected to cut official interest rates in the near term despite the GDP slide, analysts said.

But the source of that rebound remains elusive. Record-high unemployment in the euro zone has weighed on consumer spending, while fiscal austerity measures are expected to weaken state spending and employment in many euro countries this year. Borrowing costs for small businesses remain elevated in Spain and Italy.

In Germany, where unemployment is much lower than other parts of the region, the economy appears to be bouncing back quickly with business surveys signaling a return to growth this quarter, aided in part by stronger exports to Asia. Weakness in late 2012 "is likely to be a springboard for a small V-shaped rebound" as soon as this quarter, said Berenberg Bank economist Christian Schulz.

Surveys of purchasing managers and other business leaders suggest France continues to contract this quarter. French industry lost global competitiveness in recent years as its labor costs rose, economists say. A raft of tax increases imposed by President Francois Hollande is adding to the headwinds facing the economy.

The French government is preparing to at least halve its 0.8% GDP growth forecast for this year, officials familiar with the matter told The Wall Street Journal earlier this month. The smaller size of the economy and fall in tax receipts is also derailing government plans to cut the budget deficit to 3% of GDP this year.

-Gabriele Parussini contributed to this article.

Euro-Zone Economy Plunges - WSJ.com
The euro zone posts horrible GDP numbers
February 14, 2013

European economies shrank last quarter at their fastest rate since the financial crisis in 2009, official data today show. Casting doubt on policymakers' claims that Europe has turned a corner, the combined output of the 17 countries in the euro zone fell by 0.6% in the last three months of December, compared to the quarter before. GDP for the wider 27-member European Union fell 0.5%. :ranger:

European businesses appeared more weighed down than expected by high unemployment, government austerity, a stronger euro, and general poor sentiment. "These are horrible numbers. It's a widespread contraction, which does not match this positive picture of stabilization and positive contagion," says Carsten Brzeski from ING. According to consensus forecasts, analysts had expected a contraction of only 0.4% in euro zone GDP during the fourth quarter.

What's notable is that the data were the result of contractions in the region's strongest, as well as weakest economies. Germany saw its economy shrink 0.6% in the fourth quarter, while France contracted 0.3%. The German statistics office said weak net exports at the end of 2012 caused the drop in output. Italy's economy shrank by 0.9% (its sixth consecutive fall). Portugal, which is something of a poster child for austerity, performed the worst in the region, with GDP dropping by 1.8%.

This chart from Markit Economics compares GDP growth of the EU's largest economies with the United States.


The euro zone posts horrible GDP numbers Quartz
 

hello_10

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with the lower GDP numbers of EU+UK since 2008, we have Household debt, as a proportion of income, graph of US and major EU's economies as below. but this graph still state about the data's till 2010, I may try to find the latest information in this regard soon :ranger:

Indeed, the debt that made possible all those gains could end up undermining them completely. We looked at total consumer debt compared to income, and in almost every Western country it rose sharply – - even during the boom years, when incomes were rising. In the United States and Britain, debt went from 65 per cent of income in 1994 to almost 100 per cent in 2009; in Spain, from 40 to 90 per cent; and in Ireland, from 60 to 130 per cent.



The Long Economic Boom: Was It All Worth It?
 

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Eurozone goes from bad to worse amid Cyprus debacle
March 30, 2013

THE Cyprus crisis has destroyed the European common currency which operates across the euro zone. It hasn't yet destroyed the euro, but it has destroyed it as a common currency.

The destruction might not be permanent but it is, in some ways, the most telling development yet in the roiling, multi-year European financial, banking, fiscal, competitiveness, and ultimately political, crisis.

We are so accustomed now to economic crises coming out of Europe that we are in danger of missing the truly historic developments. This is especially so in Australia, because our prosperity has never been less directly tied to Europe. Nonetheless European risk to the global economy is still high.

History shows us that if a situation is unsustainable, it won't be sustained.

The euro, in its present form, is unsustainable. Cyprus is the first nation in which it has been definitely not sustained.

Those who believe the euro is an essential part of the global order will tell you that Cyprus is exceptional. It is exceptionally small, exceptionally odd, exceptionally influenced by Russian money, exceptionally exposed to Greek banks.

But in truth all countries are exceptional.

If anything, Cyprus's smallness should have guaranteed that EU institutions could cope with its financial difficulties.

The currency in use in Cyprus is still called the euro, so why do I say the common European currency has been destroyed?

This is because the shape of the Cyprus bail-out deal, and the capital controls Cyprus has issued in response, mean that a euro in Cyprus is no longer remotely worth the same as a euro in Germany or France. There are two types of euro.

The bail-out deal for Cyprus is involved and complex. But the key feature is that it involves depositors who have more than €100,000 ($123,000) in the bank losing a substantial amount of their money.

This is a retreat on an earlier proposal in which all depositors, even those with small sums, would lose part of their savings.

Both these were revolutionary proposals. It is the first time in a very long time that bank depositors were simply going to have a slice of their money confiscated by the government. This was necessary for Cyprus to raise several billion euros to contribute to fighting its liquidity crisis and being given support of another €10 billion from the central institutions: the International Monetary Fund, the EU and the European Central Bank.

But if your money is not safe in the bank, your society has ceased to function at several basic levels. The essential compact between a citizen and his institutions is broken. Naturally when word of this government theft of savings got out, every rational depositor wanted to take their money out of Cyprus. To prevent this, Cypriot banks were shut and strict limits put on daily withdrawals from ATMs.

Now the banks are open again but their opening has been accompanied by harsh capital controls. You still cannot withdraw much from your bank - €300 a day - and you cannot under any circumstances take more than €1000 with you if you leave Cyprus. Thus, if before this crisis you had €200,000 in a Cyprus bank, you are vastly worse off than if you had €200,000 in a German bank. This is the antithesis of a common currency. A Cyprus euro was and is, and may well be into the future, worth less than a German euro.

It's unclear how long these capital controls will last. At first Nicosia said a few days. Now government ministers are talking of a month or more.

We are witnessing the unbearable weight imposed by the contradictions of the euro's design. As Mark Thirlwell of the Lowy Institute puts it: austerity fatigue in southern Europe is battling bailout fatigue in northern Europe.

One central objective of the euro that has failed absolutely is the achievement of economic convergence.The idea of a united Europe was that all of Europe would have something like a common living standard. In order to achieve that, large nations, even the most perfectly integrated economically, have to engage in big transfer payments internally. :ranger:

Sydney and Melbourne lavishly subsidise Hobart and Darwin so that even if the living standard is not exactly the same it is roughly comparable and essential services especially are similarly available. The political mandate for such endless internal transfer payments is running out in Europe.

Meanwhile economic convergence has spectacularly not come about. In Germany unemployment is about 6 per cent, in Spain it's 25 per cent. Whatever that is, it's not convergence.

Indeed, it is increasingly clear that European institutions are exacerbating internal divergence, rather than ameliorating it.

Unsuccessful European economies are forced to carry a heavy currency they cannot afford. Europe makes their problems worse.

The industrious Germans, Danes and other northerners are getting sick of subsidising and bailing out feckless Greeks, Cypriots, Italians and Spaniards.

But it's not, of course, as simple as it seems. While the euro means the currency of the crisis prone European south is over-valued, making it very hard for them to grow their way out of crisis, the euro has the opposite effect for Germany: its currency is under-valued. If Germany still had the deutsche mark, it would be a very strong currency. This would damage its vast export machine. Germany is Europe's China.

Other aspects of the situation also suit Germany. Over time, bank depositors all over Europe will prefer German banks more and more, and the banks of weaker countries less and less.

Nonetheless, it would be unfair to blame the Germans for Europe's crisis. Thirlwell argues that Europe has made a series of bad bets, bad economic bets, among them that a single currency would help convergence and be manageable, and bad political bets, that political, banking and fiscal union would follow the single currency. He says: "The original euro is not a stable system, and it cannot move to a stable system."

In the short term, Cyprus will suffer enormous economic harm. Its economy might shrink by a quarter over the next couple of years. One of its biggest industries was banking, which housed huge Russian deposits. This is one reason Europeans are so sanguine about hitting depositors in Cypriot banks. No one minds a Russian oligarch taking a hair cut.

But the Cyprus crisis is also, therefore, part of a continuing, slow crisis in Western banking. Too many banks, including Western banks, are still too opaque and the quality of their collateral still dubious. There is massive uncertainty about what kind of leveraged and esoteric trades still go in inside even reformed US banks.

The European institutions will feel they have navigated through the Cyprus crisis satisfactorily, with much pain but the ship holding together. But if you're a bank depositor in the next European country that seems wobbly, will you leave your deposits where they are for your government to raid if necessary?

The Cyprus episode not only destroyed the common European currency, it further erodes trust in institutions in Europe. This is not success.

Cookies must be enabled. | The Australian
 

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Eurozone unemployment at fresh high

Unemployment in the eurozone hit a fresh high of 18.2 million in August, the EU statistics agency has said.

The number out of work rose by 34,000, but after the July data was revised up, it meant the unemployment rate remained stable at a record high of 11.4%.

The highest unemployment rate was recorded in Spain, where 25.1% of the workforce is out of a job, and the lowest of 4.5% was recorded in Austria.

The unemployment rate in Germany was 5.5%, Eurostat said.

'Lost generation'

Last week, the European Commission warned of the existence of "a real social emergency crisis" due to the fall in household income and growing household poverty.

Youth unemployment remains a particular concern, with the rate among under-25s hitting 22.8% across the eurozone, and 52.9% in Spain.

The commission repeated its call to governments and businesses to act to try to avoid the "disaster" of "a lost generation".

In Greece, the most recent figures recorded in June show that more than 50% of the young workforce has no job.

These two countries have by far the highest unemployment rate in the eurozone, as both governments look to cut spending and raise taxes to try and cut high debt levels.

These actions, which are needed in Greece to meet the terms of two huge bailouts and in Spain to restore confidence among international investors in Madrid's ability to repay its debts, have exacerbated the unemployment problem.

The eurozone as a whole is also struggling to generate the economic growth needed to stimulate employment. Its economy shrank by 0.2% between April and June, with Italy and Spain stuck in recession and France registering no growth for the past three quarters.

The notable exception is the German economy, Europe's biggest, which grew by 0.3% in the second quarter.

Across the wider 27-nation European Union, unemployment rose by 49,000 to 25.5 million people, Eurostat said, with the unemployment rate stable at 10.5%.

A commission spokesman said the total was "clearly unacceptable".

Compared with a year earlier, the unemployment rate rose in 20 countries, fell in six and remained stable in the UK.

By way of comparison, the unemployment rate in the US was 8.1% in August and 4.1% in Japan.

Child poverty fears

The European Commission said last week that disparities between the best and worst performing economies had continued to widen in the second quarter of the year.

It also expressed concern about the social situation, which remained "very serious".

The number of people experiencing financial stress remains historically high, it said in its latest quarterly review of the jobs situation across the European Union.

Household incomes had declined dramatically in Greece, where disposable incomes had dropped by 15.7% between 2009 and 2011, the commission said. Households in Ireland were living on 9% less.

Child poverty was also becoming an issue for an increasing number of households, particularly in countries where child benefits are inadequate. :toilet:

Almost a fifth of families are at risk of poverty in Spain, Greece, Italy and Portugal, the review said.

BBC News - Eurozone unemployment at fresh high

Euro zone employment falls
Mar 14, 2013

Some 19 million people currently unemployed in the bloc

The euro zone's stagnant economy failed to generate jobs at the end of last year despite increased business during the Christmas shopping season, showing the challenges facing euro zone leaders trying to reduce record unemployment.

Employment in the single currency area fell 0.3 per cent in the last three months of 2012 from the previous quarter, the fourth consecutive quarterly fall in the job creation rate, the EU's statistics agency Eu rostat said today.

The shrinking size of the working population was most pronounced in Spain, where the job rate dropped 1.4 per cent in the fourth quarter.

Of the euro zone's major economies, only Germany could manage an increase in employment creation, highlighting the divide between the bloc's biggest economy and the rest of its members.

Euro zone leaders gather in Brussels for a two-day summit today in a hunt for economic growth that has eluded them since the single currency area stagnated in late 2011.

The economy is not expected to recover until 2014, and some 19 million people are unemployed in the bloc, or about 12 per cent of the working population.

Many economists expect the ECB to cut its main lending rate to below 0.75 per cent in 2013 to try to revive the economy, but with the cost of borrowing already at a record low, such a move may not have much of an impact.

"A further rise in unemployment in the short term, and only a slow decline from 2014 is likely to be an impediment to growth," Marie Diron, an economist at Ernst and Young, said in a new report on the euro zone's economy.

"Even with recovery, the number of people out of work across Europe will remain stubbornly high. By the end of 2017, we estimate the unemployment rate will remain above 11 percent," she said.

Euro zone employment falls - Employment News | Irish Economy Jobs News | The Irish Time - Thu, Mar 14, 2013
 
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Argentina opens doors to migrants, but settling elsewhere is harder - Guardian

As growing numbers of Europeans leave the continent and its economic woes, how easy is it to go and live in a new country?


Ipanema beach in Rio de Janeiro. Some European immigrants work in Brazil illegally by repeatedly renewing 90-day tourist visas. Photograph: Ricardo Moraes/Reuters

Argentina opens doors to migrants, but settling elsewhere is harder | World news | guardian.co.uk

Euro Zone Reports Record Joblessness
March 1, 2013

PARIS — The unemployment rate in the euro zone edged up in January to another record, official data showed on Friday, as the ailing European economy continued to weigh on the job market.

That, along with new data showing a decline in inflation in the euro zone, could prompt the European Central Bank to take steps to stimulate the economy when its governing council meets on Thursday, analysts said.

Unemployment in the 17-nation euro zone climbed to 11.9 percent in January from 11.8 percent the previous month, according to Eurostat, the statistical office of the European Union.

For the 27 nations of the European Union, the jobless rate was 10.8 percent, up from 10.7 percent in December. All of the figures were seasonally adjusted.

A separate Eurostat report showed price pressures easing in February. In the euro zone, the annual inflation rate was 1.8 percent, down from 2 percent in January and below the central bank's 2 percent target.

The jobless data suggests "that wage growth is set to weaken from already low rates" and further depress consumer spending, which has already been hurt by government austerity measures, wrote Jennifer McKeown, an economist at Capital Economics in London, in a research note.

Ms. McKeown said that the low inflation and high joblessness "should leave the E.C.B.'s policy options open," and that the central bank "might discuss an interest-rate cut or other unconventional policies."

There was some bright news on Friday. A survey of European purchasing managers by Markit, a data and research firm, showed that German manufacturing output grew for a second consecutive month in February as new business levels improved.

The composite German purchasing managers' index rose to 50.3 — just above 50, the level that separates growth from contraction — from 49.8 in January. And the Federal Statistical Office in Wiesbaden reported that German retail sales rose 3.1 percent in January from December, when sales fell 2.1 percent.

Another bit of data this week also supports the view that the German economy will recover from a fourth-quarter slump. The European Commission's economic sentiment indicator for the euro zone rose to 91.1 in February from 89.5 in January, with German confidence leading the gain.

"German industry is clearly rebounding and taking advantage from better external traction," wrote Gilles Moëc, an economist at Deutsche Bank in London.

Employment is sometimes seen as a lagging indicator of economic growth because companies try to avoid adding to their costs until they are convinced that a rebound is at hand.

But despite the glimmers of hope in German industry, there are few reasons to regard a recovery as imminent. Markit's overall euro zone purchasing managers' index was unchanged in February at 47.9, indicating continued contraction.

Olli Rehn, the European commissioner for economic and monetary affairs, forecast on Feb. 22 that the euro zone economy would shrink 0.3 percent this year, about the same as last year. The bloc's debt problems, and the tax increases and government spending cuts that have been prescribed as the remedy, have sapped spending power, reducing business demand for labor.

In absolute terms, Eurostat estimated that 19 million people in the euro zone and more than 26 million in the European Union were unemployed in January.

Spain's unemployment rate was 26.2 percent, and Portugal's was 17.6 percent. Austria had the lowest rate, at 4.9 percent, followed by Germany and Luxembourg, at 5.3 percent each.

Greece's unemployment rate in November, the latest month for which Eurostat has figures for the country, was 27 percent.

France, which has the second-largest euro zone economy, after Germany's, had a 10.6 percent jobless rate in January. Britain, which is not a euro member, had a 7.7 percent rate in November.

That compares with unemployment rates of 7.9 percent in the United States in January and 4.2 percent in Japan in December.

http://www.nytimes.com/2013/03/02/b...ecord-in-january-as-inflation-eased.html?_r=0
 
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Five million paid less than living wage
29 October 2012

One in five workers in the UK is paid less than required for a basic standard of living, a report has said. :toilet:

The proportion is much higher among waiters and bar staff, at up to 90% of workers, the research for accountants KPMG suggested.

It said that nearly five million people failed to command the living wage - a pay packet that enabled a basic standard of living.

The rate stands at £8.30 an hour in London and £7.20 in the rest of the UK. :toilet:

This rate is voluntary, unlike the National Minimum Wage - the amount that employers must pay by law, which is set at £6.19 an hour for those aged 21 and over.

"Times are difficult for many people, but of course those on the lowest pay are suffering the most," said Marianne Fallon, head of corporate affairs at KPMG, which has itself signed up to pay the living wage.

"Paying a living wage makes a huge difference to the individuals and their families and yet does not actually cost an employer much more.

"Tackling in-work poverty is also vital if we are to enable more people to improve their life prospects and increase social mobility in this country."

BBC News - Five million paid less than living wage, says KPMG

we have a news as above that around 20% people of UK dont work for the minimum wage for a person to survive, around $10/hour, while the news as below states that there are around 29% British Citizens who dont even have any source of earning, whether less than the living wage or not :toilet:

these two news clearly tells us about the crisis state of UK, which laugh on the living standard of developing countries :facepalm:

United Kingdom Unemployment Rate Unchanged at 7.8 Percent in January

The number of unemployed people rose by 7,000 comparing November 2012 to January 2013 with the previous period. The unemployment rate was 7.8 percent of the economically active population for November 2012 to January 2013. This was unchanged from August to October 2012 but down 0.5 percentage points from a year earlier.

The rise in the number of people in employment was 131,000, comparing November 2012 to January 2013 with August to October 2012. There was an increase of 151,000 in the number of people employed in the private sector with the public sector showing a fall of 20,000. There were 29.73 million people aged 16 and over in employment and the employment rate for people aged from 16 to 64 was 71.5 percent for November 2012 to January 2013. :toilet:

For November 2012 to January 2013, there were 8.95 million economically inactive people aged from 16 to 64, the lowest figure since 2006. The number of economically inactive people aged from 16 to 64 was 118,000 lower than for August to October 2012 and 320,000 lower than a year earlier. This fall in economic inactivity was partly due to fewer women retiring between the ages of 60 and 64 due to changes in the state pension age for women.

The number of people claiming Jobseeker's Allowance stayed relatively steady between January and February 2013 with only a small fall of 1,500. The number of people claiming Jobseeker's Allowance (1.5 million) is almost a million lower than the number of unemployed people; many unemployed people are not eligible for JSA.

Average weekly earnings excluding bonus payments rose by 1.2 percent comparing November 2012 to January 2013 with the same period a year earlier. The annual growth in earnings was slightly lower than the 1.3 percent reported for October to December 2012. In cash terms, average weekly earnings excluding bonus payments were £442 in January 2013, before taxes and other deductions from gross pay, up from £438 a year earlier.

There continues to be a cut in the real value of pay, as inflation measured by the Consumer Prices Index was 2.7 percent between January 2012 and January 2013. The annual growth in weekly wages excluding bonuses has been continuously below inflation since August to October 2009.

United Kingdom Unemployment Rate
 
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Almost 90% would 'consider moving abroad' for better financial prospects

Nearly nine in 10 Britons would consider leaving the UK for a better - and wealthier - life abroad within the next five years

The current recession combined with the perception that property is cheaper overseas and job prospects better collectively accounted for nearly a third of all reasons for emigrating, according to a survey by Skyscanner.

Sam Baldwin, Skyscanner's travel editor, said: "For many people the idea of 'living the dream' abroad is very alluring. The survey revealed that our perception of life abroad is very positive – perhaps overly so – and many people come back from a holiday enamoured with their destination. Interestingly, Spain and USA were two of the most popular places even though both countries are currently suffering from their own economic problems, which suggests that the dream of moving abroad to improve financial prospects may be just that - a dream.

The dream may be more realistic if, rather than moving abroad to look for new work, you are sent abroad as part of an existing job. Around 750,000 British workers are being posted abroad on assignments with their existing employer, and a massive 84 per cent believe this is helping them to climb the corporate ladder, according to the NatWest International Personal Banking (IPB) Quality of Life Index.

They also feel they benefit from an improved lifestyle, backing up the Skyscanner research results, and the increasing use of temporary global workers means that the traditional definition of 'expat' is now being blurred, said Dave Isley, head of NatWest International Personal Banking.

He added: "The growth of the global worker has brought with it an opportunity to share knowledge and experience around the world. The great brain exchange is a fantastic concept of other economies temporarily sharing the strengths of British workers.

Almost 90% would 'consider moving abroad' for better financial prospects - Telegraph

and further to my last post, which 'only' clear that 49% Working Age British Citizens are not getting even the minimum living wage, around $10/hour, which also has a meaning that not 'all' the rest of 51% people would have even $50k salary, a decent salary to have a decent life in UK/Australia/US. as I guess, at least rest of 31% people would have around close to or less than $20/hour, or $40k, salary in US/UK/Australia....... thats what I have said one time, on the basis of my high level international degrees, I may live a better life in India, better than at least 70% working class of US/UK/Australia......

(how much even the $10/hour means for? I do remember when I got permanent Visa of Australia and moved to Perth in January 2006, as per my 2 years condition of that visa to live there. and I lived in YMCA Lodge for the first few months, the cheapest as first I had to secure a professional job in Perth, the state of WA where only I could work for the next 2 years. and it costs around $180/week to live in its cheapest room, with at least $10 a meal in the cheapest McDonalds of Perth...... $10/hour with 40 hours a week, means $400 a week itself isn't easy to survive in Australia/UK/US type countries, while around 49% UK's Working Class Citizens aren't getting it :nono:. my friends are on at least $200k salary right now, after 4-5 years of experience, which is not possible for at least 85% population of Australia/US/UK right now :nono:)

and this is how they have reached a state, as below :toilet:

Poverty returns to Europe by leaps and bounds

The news about the economic situation in the EU reminds frontline reports. Head of Unilever in Western Europe, Ian Zeyderveld, from the pages of the Financial Times Deutschland said that poverty is returning to Europe. The main reason for the increasingly lower income of the residents of the Old World is a full-blown crisis in the euro area that is still far from complete.

Ian Zeyderveld has proposed a new strategy to remedy the rapidly declining profits of Unilever in Western Europe. He believes that product packaging should be made smaller to reduce its price. It works both in Asia and now in Europe. The Unilever is not alone in changing its marketing strategy in the crisis-stricken European countries.

Head of the Department on International Financial Issues at the Centre for European Economic Research, Professor Michael Schroeder said that the European crisis affects export-oriented producers more than others. As a result, market conditions weaken, unemployment rises, and living standards lower. According to the expert, this situation may last for three to four years. Numerous examples of the fall of the level of European citizens clearly illustrate his words.

In its study, the British Guardian newspaper found that 83 percent of teachers in the UK every day see hungry students. Over half of teachers say that in the last couple of years the number of hungry school children has increased, as many British families are suffering from reduced benefits, unemployment and recession. Almost half of the teachers admitted to feeding starving scholars, one in five even gives them money for lunch. Why is this happening?

The Center of the Modern Family in the UK conducted a study that demonstrated the effects of the fall of wages and cost of living for the Britons, and increased cost of goods and services related to child care. The crisis also hurts young Britons of 18-32 years old – according to the survey, one in five cannot pay their utility bills, and one in eight young resident of England skips lunch for the opportunity to feed their family.

But Britain is not the poorest country in Western Europe. The situation in not so wealthy economies of the region is much worse. The unemployment rate for people aged 16 to 24 years old in Italy is 28 percent, in Greece – 43 percent, and in Spain – 51 percent.

The Greek economy in the past year fell by 6 percent, the recession in the country has been ongoing for five years, and it is projected that this year the economy will fall by another 5 percent. About 20 percent of retail stores were shut down. The number of suicides in Greece over the last 12 months has increased by 40 percent, and the amount of debt of the Greek government, according to the IMF, is 160 percent of GDP.

In June of this year, the public debt of Italy, according to the local central bank, has reached a record $2 trillion euros, which is 123 percent of its GDP. Italian Prime Minister Mario Monti said that Italy does not need financial help from the EU, but only moral support, which is hard to believe.

The second largest economy in Europe after Germany, France, has also suffered from the crisis. According to the Statistics Bureau of France Insee, this is the third stagnant quarter in a row. Stagnation is, of course, not a recession, but the country's government has a lot to think about.

Perhaps one of a few countries that are more or less stable during the financial storms is Germany. According to the National Bureau of Statistics, the growth of the economy of Germany for the year 2012 was 0.5 percent. It had a positive impact on the growth of domestic consumption and export.

The opinion of the Europeans about the situation is worthy of note. In July of 2012, the results of the survey "Eurobarometer" that tracks the level of anxiety and concern among residents of the Old World were published. It turned out that 71 percent of the EU citizens consider the economic situation in the country poor.

30 percent of the residents of the EU assess their position in the labor market as unsatisfactory. 100 percent of Greek believes that the economy is in trouble. The same opinion on the state of the national economies was expressed by 99 percent of the population of Spain, 96 percent of Irish, 93 percent of Hungarians and 92 percent of Italians.

However, according to the same survey, there are optimistic countries, whose people consider the situation in their countries more than acceptable. Among them are 83 percent of Swedes, 77 percent of Germans, 66 percent of Austrians and 55 percent of Danes.

According to head of the Scientific Research of Mises Center Yaroslav Romanchuk, now there is a situation where we have two Europes – a happy one (mainly Germany and Scandinavia), and the rest – about 20 countries, and the difference between the two Europes is turning into an abyss. The consequence of this situation is growing nationalism, resentment, and envy.


Poverty returns to Europe by leaps and bounds � Set You Free News
 

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Euro-Zone Economy Set For Continued Contraction
April 04, 2013

Activity in the euro zone's private sector fell at a sharper pace in March, according to surveys of purchasing managers, leaving the currency area on course for its sixth straight quarter of economic contraction.

The latest evidence of persistent weakness in the euro-zone economy came as members of the European Central Bank's governing council meet in Frankfurt for a monthly assessment of their monetary policy stance. But they are not expected to provide more stimulus, despite an inflation rate that is below the central bank's target.

Markit Economics Thursday said its Purchasing managers Index for the services sector fell to 46.4 from 47.9, below the flash estimate released last month.

The composite PMI--which measures activity in both the manufacturing and services sectors--fell to 46.5 from 47.9 in February, and was in line with the flash estimate released last month.

A reading below 50.0 indicates that activity has fallen. According to the composite PMI, activity has now fallen in each of the last 19 months, with the exception of one month of modest expansion at the start of 2012.

That is consistent with official data, which shows that the euro zone's gross domestic product fell for the five straight quarters to the end of last year. The PMI suggests that contraction continued in the quarter ended March, and is consistent with other surveys and measures of output.

"While the first quarter contraction is likely to have been less steep than the 0.6% decline seen in the final quarter of last year, the concern is that the euro-zone downturn shows no signs of ending," said Chris Williamson, chief economist at Markit.

According to the PMI, France was the weakest of the major euro-zone economies, with private-sector activity falling to a 48-month low. But even Germany edged closer to contraction, with its composite PMI at 50.6, a three-month low.

Ireland was the only other euro-zone member to record an expansion, but it too seems to be succumbing to the currency area's generalised malaise, with its composite PMI falling to 50.8, an eight-month low.

There are no signs of an imminent recovery in the surveys of purchasing managers, with new orders falling at a faster rate, and payrolls being cut for the 15th straight month. That means the euro zone's unemployment rate--already at a record high of 12.0%--is likely to push higher in the coming months, fueling popular discontent with the austerity programs that have dominated the euro zone's response to its fiscal problems.

Reflecting weak demand, businesses said they are cutting the prices they charge, an indication that the currency area's inflation rate will fall even further below the ECB's target in coming months.

However, the ECB's governing council is not convinced that a further cut in its key interest rate, or alternative measures, would revive the economy, looking instead to politicians to press ahead with more fundamental economic reforms.

Euro-Zone Economy Set For Continued Contraction
 

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Euro Zone Reports Record Joblessness
March 1, 2013

PARIS — The unemployment rate in the euro zone edged up in January to another record, official data showed on Friday, as the ailing European economy continued to weigh on the job market.

That, along with new data showing a decline in inflation in the euro zone, could prompt the European Central Bank to take steps to stimulate the economy when its governing council meets on Thursday, analysts said.

Unemployment in the 17-nation euro zone climbed to 11.9 percent in January from 11.8 percent the previous month, according to Eurostat, the statistical office of the European Union.

For the 27 nations of the European Union, the jobless rate was 10.8 percent, up from 10.7 percent in December. All of the figures were seasonally adjusted.

A separate Eurostat report showed price pressures easing in February. In the euro zone, the annual inflation rate was 1.8 percent, down from 2 percent in January and below the central bank's 2 percent target.

The jobless data suggests "that wage growth is set to weaken from already low rates" and further depress consumer spending, which has already been hurt by government austerity measures, wrote Jennifer McKeown, an economist at Capital Economics in London, in a research note.

Ms. McKeown said that the low inflation and high joblessness "should leave the E.C.B.'s policy options open," and that the central bank "might discuss an interest-rate cut or other unconventional policies."

There was some bright news on Friday. A survey of European purchasing managers by Markit, a data and research firm, showed that German manufacturing output grew for a second consecutive month in February as new business levels improved.

The composite German purchasing managers' index rose to 50.3 — just above 50, the level that separates growth from contraction — from 49.8 in January. And the Federal Statistical Office in Wiesbaden reported that German retail sales rose 3.1 percent in January from December, when sales fell 2.1 percent.

Another bit of data this week also supports the view that the German economy will recover from a fourth-quarter slump. The European Commission's economic sentiment indicator for the euro zone rose to 91.1 in February from 89.5 in January, with German confidence leading the gain.

"German industry is clearly rebounding and taking advantage from better external traction," wrote Gilles Moëc, an economist at Deutsche Bank in London.

Employment is sometimes seen as a lagging indicator of economic growth because companies try to avoid adding to their costs until they are convinced that a rebound is at hand.

But despite the glimmers of hope in German industry, there are few reasons to regard a recovery as imminent. Markit's overall euro zone purchasing managers' index was unchanged in February at 47.9, indicating continued contraction.

Olli Rehn, the European commissioner for economic and monetary affairs, forecast on Feb. 22 that the euro zone economy would shrink 0.3 percent this year, about the same as last year. The bloc's debt problems, and the tax increases and government spending cuts that have been prescribed as the remedy, have sapped spending power, reducing business demand for labor.

In absolute terms, Eurostat estimated that 19 million people in the euro zone and more than 26 million in the European Union were unemployed in January.

Spain's unemployment rate was 26.2 percent, and Portugal's was 17.6 percent. Austria had the lowest rate, at 4.9 percent, followed by Germany and Luxembourg, at 5.3 percent each.

Greece's unemployment rate in November, the latest month for which Eurostat has figures for the country, was 27 percent.

France, which has the second-largest euro zone economy, after Germany's, had a 10.6 percent jobless rate in January. Britain, which is not a euro member, had a 7.7 percent rate in November.

That compares with unemployment rates of 7.9 percent in the United States in January and 4.2 percent in Japan in December.

http://www.nytimes.com/2013/03/02/b...ecord-in-january-as-inflation-eased.html?_r=0

IMF: Euro-zone companies face massive 'debt overhang'
April 17

Euro-zone companies face a massive "debt overhang" that could prolong the region's downturn and risk a return to a more acute crisis, the International Monetary Fund warned Wednesday in a sobering report on risks that may be accumulating in the world financial system.

The IMF estimated that as much as one-fifth of the corporate bonds and loans issued by major European corporations are "unsustainable" and will force the firms to default or scale back, cutting capital expenditures, eliminating shareholder dividends or taking other steps to conserve cash to make debt payments.

Either alternative could create problems — with defaults damaging the banks or others who have lent money or bought corporate bonds, and capital investment cuts or other spending reductions affecting the ailing economy.

The data were released ahead of IMF spring meetings, where the fate of the euro zone remains a central issue. The information presents a quandary. Although some corporations in Europe have taken on too much debt, small- and medium-size businesses are finding it hard to borrow, further impeding any economic rebound.

"The slump in Europe is worrisome," said IMF chief economist Olivier Blanchard, who suggested that European banks be allowed to bundle loans to small businesses into marketable securities to encourage them to lend.

The region has been consumed for three years in a crisis revolving around debt, and it is reeling from the subsequent "fiscal consolidation," as nations cut spending or raise taxes to stabilize finances. :facepalm:

The potential corporate debt crisis could unleash the same dynamic in the private sector, whose debts sometimes dwarf the size of the surrounding economy. The IMF, which studied a sample of Europe's largest firms, said the situation is probably worse than its survey indicated, because the companies were among the region's strongest.

Just like their government counterparts, euro-zone firms gorged on cheap money that the establishment of the currency union provided to countries such as Italy and Spain, and they are paying it back amid a recession.

"Firms in the euro area periphery have built a sizeable debt overhang during the credit boom, on the back of high profit expectations and easy credit conditions," the IMF said in its latest Global Financial Stability Report. Larger firms may skirt the problem by selling unneeded assets, "but further reductions in operating costs, dividends and capital expenditures may also be required, posing additional risks to growth."

The warning on corporate debt is only one of the problems the fund sees on the horizon for the world financial system, particularly Europe. Years into a crisis that early on identified the banking sector as a particular weakness, the euro zone has not adequately recapitalized its banks, forced them to restructure and shed weak loans, or finished work on what many consider a necessity: a banking union that would unify financial supervision and share the risks of bank failures.

In one startling statistic, the IMF said euro-zone banks were only about halfway through a process of "deleveraging" — or bringing their obligations more closely in line with their assets. The fund estimated that euro-zone financial institutions still need to cut $1.5 trillion from their books, an amount that may increasingly crimp local lending because some of the easier steps, such as pulling out of overseas operations, have been done.

In many ways, worldwide financial conditions have improved in recent months. U.S. banks in particular, the fund said, have rebounded from the crisis, the euro zone has skirted the acute risk of breakup, and emerging markets have absorbed a large influx of capital without serious problems.

But the IMF, which was criticized for not saying more in advance about the circumstances that led to the U.S. financial crisis in 2008, is now using an abundance of caution. :ranger:

Pension funds in the United States are undertaking a "gamble for resurrection" by trying to overcome shortfalls with ever-riskier investments. Pension funds without enough to pay expected future benefits have placed as much as 25 percent of their money in "alternative investments," such as hedge funds and other riskier but potentially higher-return vehicles, the IMF reported.

U.S. firms have issued record levels of bonds in the low-interest-rate environment, but the money raised "is increasingly geared toward less productive use," such as buying back company stock.

Central banks, looking at weak growth and high unemployment rates, may feel the need to keep interest rates low and money flowing. But the fund said financial regulators may have to be aggressive and perhaps start forcing financial institutions to set aside more money to cover potential losses.

"Tension is building between the ongoing need for extraordinary monetary policy accommodation and credit markets that are maturing more quickly than in typical cycles," the IMF wrote. "High unemployment and low inflation may justify an accommodative monetary policy stance. But other tools need to be employed to counteract undesirable excesses in credit."

In remarks on Wednesday at Johns Hopkins University, Treasury Secretary Jack Lew insisted that the world economy must do more to stimulate domestic spending and generate economic growth. And he said the United States cannot be the sole supporter of growth across the globe.

"There is now broad agreement that we cannot return to a pattern of global growth that is built on the U.S. being the world's importer of first and last resort," Lew said. "Looking ahead, the United States must raise national savings, and emerging and more rapidly growing parts of the world, like Asia, must increasingly rely on domestic demand."

IMF: Euro-zone companies face a massive ?debt overhang? - The Washington Post
 

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We have National Debt Data's about the major OECD countries as below :ranger:


=> OECD countries with the highest National Debt in 2012 in relation to GDP

Japan 236.56%

Greece 170.73%

Italy 126.33%

Portugal 119.07%

Ireland 117.74%

United States 107.18%

Belgium 99.03%

France 89.97%

United Kingdom 88.68%

Spain 90.69%

Source: IMF, Worldwide; International Monetary Fund

"¢ Countries with the highest public debt 2012 | Statistic

Rogoff and Reinhart defend their numbers

Harvard economists admit to a coding error but stand by their central finding: when government debt is above 90%, growth is sent into reverse

Kenneth Rogoff and Carmen Reinhart, the economists accused of getting their sums wrong in an influential study of the impact of high government debt, have hit back at their critics and defended their central claim.

The Harvard economists claimed that accusations of sloppy statistical analysis were misplaced and their central finding still stood that when government debt is above 90% growth is sent into reverse. Their argument has been quoted by politicians in defence of austerity measures.

The pair admit that researchers from the University of Massachusetts, Amherst, were right to point out a coding error that omitted several countries from an Excel spreadsheet of historical data used to make the calculations.

"It is sobering that such an error slipped into one of our papers despite our best efforts to be consistently careful," Rogoff and Reinhart said.

But after burning the midnight oil to check their calculations, Rogoff and Reinhart said they still found countries with debts that amount to more than 90% of GDP experienced much slower growth – the same conclusion reached in their original study.

Economist Dean Baker, at odds with academic economists who argue that high debt ratios harm growth, has labelled the R&R analysis bankrupt.

Baker and other Keynesians leapt on the Massachusetts study because the R&R hypothesis has been used repeatedly by right-wing politicians to justify their austerity policies.

Massachusetts professors Thomas Herndon, Michael Ash and Robert Pollin said in their critical report that when they repeated the R&R analysis over a longer timescale, which they argued made it more robust, they got a growth figure of 2.2%. Strikingly, they used data going back before the second world war, which they argued gave a longer perspective.

Pollin said R&R also distorted the results with weightings on countries that made little sense. He pointed to the inclusion of New Zealand's 1951 figures. In that year New Zealand's debts breached the 90% of GDP barrier and growth was minus 7.6%, weighing heavily on the overall result.:coffee: Other years that distorted the data were included, he said.

"People make errors but when you combine the errors with the weighting that's where you get this result," said Pollin.

The scope of the study and the weighting applied to some countries in the study is key to the dispute.

R&R "objected in the strongest terms" to the criticism that they missed several years of data and supported their previous decision to apply controversial weightings.

"The 'gaps' are explained by the fact there were still gaps in our public debt data set at the time of this paper," they said. "Our approach has been followed in many other settings where one does not want to overly weight a small number of countries that may have their own peculiarities."

They also deflect criticism by arguing that they produced averages based on mean and median calculations. Rightwingers emphasised the mean figure, which showed growth of minus 0.1% in countries with more than 90% debt to GDP ratios, whereas they always preferred the median.

Is that the end of the matter? No. Paul Krugman, the Nobel prize winning Princeton economist, is incensed at the median/mean debate, saying R&R never disputed politicians who used the mean figure, especially Republican Paul Ryan, who cited it as the main reason to impose steep public spending cuts.

Like Dean, Krugman has never bought the line that high debts cause low growth. Instead he sees a negative causation: that low growth causes high debts. In his latest blog, he makes this point again.

And R&R, who were criticised for not releasing the coding and data sets for their study when it was first released, have similarly failed to provide a transparent view of their workings this time around. And until they do critics will continue to argue that their findings are based on selective data and unjustified weightings and poor analysis.

Rogoff and Reinhart defend their numbers | Business | guardian.co.uk
 

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A "sign" of greece economy. Empty billboards everywhere.






From Asia, Industrial Jobs will First Go Back to US+EU, hopefully by 2018/22

a developed country can't grow for more than 1.0% to 2.0% on long run, as per the average growth rate of US+EU economies for the last 20 years. but considering the Budget Expenditure cuts due to being already heavily indebted, if US+EU may maintain even 0% growth for the next 10 years, without any sudden fall like in late 2008, then it will itself be a big achievement for them..... while I sincerely believe that the issues of 2008 recession is always present, as per the news we read also. and considering the level of debts they already have, we don't find they may borrow in the same way this time also if they face any new recession like late 2008 :nono:

for a developing country, it would achieve 5%+ growth on long run, no matter how much debt it already has. but how the US+EU will reduce their debt level, without any projected growth due to so many budget cuts?????? while their economy size is struggling at the level of 2008 right now, along with population growth too :tsk:

we would see many funny things by end of this decade. while on my side, I have already predicted that from Asia, Industrial jobs will first go back to US+EU and then it will go to Africa :thumb:

OECD countries with the highest National Debt in 2012 in relation to GDP

Japan 236.56%

Greece 170.73%

Italy 126.33%

Portugal 119.07%

Ireland 117.74%

United States 107.18%

Belgium 99.03%

France 89.97%

United Kingdom 88.68%

Spain 90.69%

Source: IMF, Worldwide; International Monetary Fund

"¢ Countries with the highest public debt 2012 | Statistic
 

hello_10

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We have National Debt Data's about the major OECD countries as below :ranger:


=> OECD countries with the highest National Debt in 2012 in relation to GDP

Japan 236.56%

Greece 170.73%

Italy 126.33%

Portugal 119.07%

Ireland 117.74%

United States 107.18%

Belgium 99.03%

France 89.97%

United Kingdom 88.68%

Spain 90.69%

Source: IMF, Worldwide; International Monetary Fund

"¢ Countries with the highest public debt 2012 | Statistic

we have two graphs as below, and here its clear that now US/UK needs to win wars, win over a very big economy, like how Britain won over India in 1818 and then improved their economy since then, came out of extreme poverty since then by winning over India :ranger:

 

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India suffer heavy Trade Deficit with EU but its still not helping EU's economies :toilet:



Free Economy Photos, Images, Market Infographics, Stocks Picture Gallery - Financial Express

India's exports to European countries increased by about 16 per cent to USD 57.7 billion in 2011-12, while imports rose by about 29 per cent year-on-year to USD 91.5 billion.

Exports to Europe up 16%; imports 29%
Govt aims to bring down CAD to 2.5% by 12th Plan-end

Govt aims to bring down CAD to 2.5% by 12th Plan-end: Montek

the above two news has a simple meaning that Indian government may also consider to impose Economic/Trade sanctions on European Union to bring down CAD this way :ranger:
 
Last edited:

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IMF: Euro-zone companies face massive 'debt overhang'
April 17

Euro-zone companies face a massive "debt overhang" that could prolong the region's downturn and risk a return to a more acute crisis, the International Monetary Fund warned Wednesday in a sobering report on risks that may be accumulating in the world financial system.

The IMF estimated that as much as one-fifth of the corporate bonds and loans issued by major European corporations are "unsustainable" and will force the firms to default or scale back, cutting capital expenditures, eliminating shareholder dividends or taking other steps to conserve cash to make debt payments.

Either alternative could create problems — with defaults damaging the banks or others who have lent money or bought corporate bonds, and capital investment cuts or other spending reductions affecting the ailing economy.

The data were released ahead of IMF spring meetings, where the fate of the euro zone remains a central issue. The information presents a quandary. Although some corporations in Europe have taken on too much debt, small- and medium-size businesses are finding it hard to borrow, further impeding any economic rebound.

"The slump in Europe is worrisome," said IMF chief economist Olivier Blanchard, who suggested that European banks be allowed to bundle loans to small businesses into marketable securities to encourage them to lend.

The region has been consumed for three years in a crisis revolving around debt, and it is reeling from the subsequent "fiscal consolidation," as nations cut spending or raise taxes to stabilize finances. :facepalm:

The potential corporate debt crisis could unleash the same dynamic in the private sector, whose debts sometimes dwarf the size of the surrounding economy. The IMF, which studied a sample of Europe's largest firms, said the situation is probably worse than its survey indicated, because the companies were among the region's strongest.

Just like their government counterparts, euro-zone firms gorged on cheap money that the establishment of the currency union provided to countries such as Italy and Spain, and they are paying it back amid a recession.

"Firms in the euro area periphery have built a sizeable debt overhang during the credit boom, on the back of high profit expectations and easy credit conditions," the IMF said in its latest Global Financial Stability Report. Larger firms may skirt the problem by selling unneeded assets, "but further reductions in operating costs, dividends and capital expenditures may also be required, posing additional risks to growth."

The warning on corporate debt is only one of the problems the fund sees on the horizon for the world financial system, particularly Europe. Years into a crisis that early on identified the banking sector as a particular weakness, the euro zone has not adequately recapitalized its banks, forced them to restructure and shed weak loans, or finished work on what many consider a necessity: a banking union that would unify financial supervision and share the risks of bank failures.

In one startling statistic, the IMF said euro-zone banks were only about halfway through a process of "deleveraging" — or bringing their obligations more closely in line with their assets. The fund estimated that euro-zone financial institutions still need to cut $1.5 trillion from their books, an amount that may increasingly crimp local lending because some of the easier steps, such as pulling out of overseas operations, have been done.

In many ways, worldwide financial conditions have improved in recent months. U.S. banks in particular, the fund said, have rebounded from the crisis, the euro zone has skirted the acute risk of breakup, and emerging markets have absorbed a large influx of capital without serious problems.

But the IMF, which was criticized for not saying more in advance about the circumstances that led to the U.S. financial crisis in 2008, is now using an abundance of caution. :ranger:

Pension funds in the United States are undertaking a "gamble for resurrection" by trying to overcome shortfalls with ever-riskier investments. Pension funds without enough to pay expected future benefits have placed as much as 25 percent of their money in "alternative investments," such as hedge funds and other riskier but potentially higher-return vehicles, the IMF reported.

U.S. firms have issued record levels of bonds in the low-interest-rate environment, but the money raised "is increasingly geared toward less productive use," such as buying back company stock.

Central banks, looking at weak growth and high unemployment rates, may feel the need to keep interest rates low and money flowing. But the fund said financial regulators may have to be aggressive and perhaps start forcing financial institutions to set aside more money to cover potential losses.

"Tension is building between the ongoing need for extraordinary monetary policy accommodation and credit markets that are maturing more quickly than in typical cycles," the IMF wrote. "High unemployment and low inflation may justify an accommodative monetary policy stance. But other tools need to be employed to counteract undesirable excesses in credit."

In remarks on Wednesday at Johns Hopkins University, Treasury Secretary Jack Lew insisted that the world economy must do more to stimulate domestic spending and generate economic growth. And he said the United States cannot be the sole supporter of growth across the globe.

"There is now broad agreement that we cannot return to a pattern of global growth that is built on the U.S. being the world's importer of first and last resort," Lew said. "Looking ahead, the United States must raise national savings, and emerging and more rapidly growing parts of the world, like Asia, must increasingly rely on domestic demand."

IMF: Euro-zone companies face a massive ?debt overhang? - The Washington Post

The return of mass poverty to Europe

Almost one in four people in the European Union was threatened with poverty or social deprivation in 2010. This is the conclusion of an official report by the European Commission presented in December. According to the report, 115 million people, or 23 percent of the EU population, were designated as poor or socially deprived. The main causes are unemployment, old age and low wages, with more than 8 percent of all employees in Europe now belonging to the "working poor."

Single parents, immigrants and young people are worst affected. Among young people, unemployment is more than twice as high as among adults. Some 21.4 percent of all young people in the EU had no work in September 2011. Spain leads all other EU countries with a youth unemployment rate of 48 percent. In Greece, Italy, Ireland, Lithuania, Latvia and Slovakia youth unemployment is between 25 percent and 45 percent.

In countries such as Germany, the Netherlands and Austria, youth unemployment rates are lower only because training takes longer and many unemployed young people are "parked" in all sorts of schemes that exclude them from the official statistics. But even in these countries the chance of getting a decent-paying job is diminishing. Some 50 percent of all new employment contracts in the EU are temporary work contracts. For workers aged 20 to 24, the proportion is 60 percent.

The growth of poverty and social deprivation is not simply a result of the economic crisis, but rather the result of a deliberate policy on the part of European governments and the European Union. In spite of these alarming statistics, the authorities continue to slash social spending, increase the retirement age, eliminate public-sector jobs and expand the low-wage sector—all measures that expand and deepen poverty. With the decision at the last EU summit to include a "debt brake" in the constitutions of all EU member states, governments have deprived themselves of virtually any possibility of alleviating the social crisis through fiscal measures.
After the Second World War, when unemployment and poverty were widespread in Europe, even right-wing governments felt obliged to promise a better and more prosperous future. Today, all European governments have nothing to offer the working population apart from sacrifice and privation.
:toilet:

Every New Year's speech echoed this theme. Greek Prime Minister Lucas Papademos warned his countrymen, who have already been subject to brutal cuts, "We have to continue our efforts with determination so that the sacrifices we have made up to now won't be in vain."

French President Nicholas Sarkozy proclaimed: "This extraordinary crisis, without doubt the gravest since the Second World War, is not over "¦ you are ending the year more anxious for yourselves and your children."

German Chancellor Angela Merkel threatened: "Next year will no doubt be more difficult than 2011." And Italian President Giorgio Napolitano, an ex-Stalinist who spent decades in the Communist Party, called on the Italian population to make sacrifices in order to balance the national budget: "No one, no social group, can today avoid the commitment to contribute to the clean-up of public finances in order to prevent the financial collapse of Italy," he said.

The claim that the austerity measures are being used to shore up national treasuries is a blatant lie. Public finances are insolvent because they have been plundered by the same financial elite that now benefits from the austerity measures. Taxes on profits, property and high incomes have been repeatedly reduced. Many Eastern European countries, where poverty is particularly high, have introduced a flat tax of less than 20 percent. Three years ago, trillions in public funds were transferred to the vaults of the banks to cover their speculative losses.

The EU report documenting the growth of poverty also contains figures on the increasing gap between rich and poor. In Germany, the richest one percent of the population possesses 23 percent of all wealth and the richest tenth controls 60 percent. Half of the population possesses just 2 percent of all wealth. The report says: "A structure where the poor own less than 5 percent, the middle classes own 30-35 percent, and the rich own over 60 percent represents a typical pattern to be found in most European countries."

The financial elite that monopolises a huge proportion of social assets has lost every social inhibition. In the post-war period, with the memories of war crimes still fresh and socialist sentiments widespread, they were forced to make social concessions to preserve their rule. The existence of the Soviet Union also exerted a moderating effect. Despite the Stalinist degeneration, the nationalised property relations established by the Russian Revolution represented a possible alternative to the so-called free market.

In the course of the last twenty years the financial elite has lost all restraint and declared war on the working class. If democratic elections stand in its way, it sweeps them aside—as in Greece and Italy, where technocratic governments were installed that are responsible solely to the banks. Nor does the financial oligarchy shy away from the violent suppression of social resistance, as exemplified by the forcible eviction of Occupy protesters across the US and internationally.

Like the late 18th Century French aristocracy on the eve of the revolution, today's financial aristocracy is not prepared to yield even a small fraction of its privileges or wealth.

The financial elite is supported by representatives of the wealthy middle classes in the media, the established political parties, the trade unions and the ex-left milieu, who insist that there is no alternative to austerity and use every means to sabotage social opposition.

A typical representative of this species is the former German Green Party leader Joschka Fischer. In the New Year's Eve edition of the Süddeutsche Zeitung, the one-time radical squatter and later German foreign minister enthusiastically welcomed the latest austerity measures agreed by the EU and concluded with a hymn of praise to the financial markets. "And to whom do we owe all of this European progress?" he wrote. "To the wisdom of our leaders? Unfortunately not. It was almost exclusively due to the pressure of the much maligned markets!"

The return of mass poverty to Europe sets the stage for the return of revolution. The working class and the youth must prepare themselves for the inevitable confrontation with the financial elite by breaking with its political representatives in Social Democracy, the trade unions, the Left Party and other pseudo-left organizations, and undertaking the fight for a socialist program through the building of the Socialist Equality parties and the International Committee of the Fourth International across Europe. :ranger:

Peter Schwarz

The return of mass poverty to Europe - World Socialist Web Site
 

hello_10

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From Asia, Industrial Jobs will First Go Back to US+EU, hopefully by 2018/22

a developed country can't grow for more than 1.0% to 2.0% on long run, as per the average growth rate of US+EU economies for the last 20 years. but considering the Budget Expenditure cuts due to being already heavily indebted, if US+EU may maintain even 0% growth for the next 10 years, without any sudden fall like in late 2008, then it will itself be a big achievement for them..... while I sincerely believe that the issues of 2008 recession is always present, as per the news we read also. and considering the level of debts they already have, we don't find they may borrow in the same way this time also if they face any new recession like late 2008 :nono:

for a developing country, it would achieve 5%+ growth on long run, no matter how much debt it already has. but how the US+EU will reduce their debt level, without any projected growth due to so many budget cuts?????? while their economy size is struggling at the level of 2008 right now, along with population growth too :tsk:

we would see many funny things by end of this decade. while on my side, I have already predicted that from Asia, Industrial jobs will first go back to US+EU and then it will go to Africa :thumb:

Why are Europeans waging jihad in Syria? | GlobalPost

Why are Europeans waging jihad in Syria?

BRUSSELS, Belgium — A man looks deep into the camera and pleads, in Arabic: "You, there in Europe, watching this video. I'm calling you."

With urgency in his voice, he refers to children being murdered and women being raped at the hands of the enemy.

"We really need you here. This is your opportunity for paradise."

"Paradise" via the distinct possibility of death on a Syrian battlefield, he means.

The man is calling for recruits to join the Al Nusra Front, an Al Qaeda affiliate that makes up part of Syria's fragmented armed opposition fighting the government forces of President Bashar al-Assad.

As unappealing as that "opportunity" may sound to the average European, the message has resonated with hundreds of youths here who have disappeared from their schools and homes and turned up in Syria.

Most are lifelong Muslims, while others are recent converts, a shocking number of them just teenagers, reportedly as young as 15.

Teenage Western recruits in Syria's uprising throw yet another complex layer on the country's 2-year-old civil war, which has killed more than 70,000 and displaced millions more. As it is, Western powers are grappling with how best to aid rebel groups that are fighting alongside extremists to replace Assad's regime.

It's also stirred communities here in Europe where authorities are on alert for any signs that residents are drawn to violent extremism.

The International Center for the Study of Radicalization, a London think tank, estimates as many as 600 Europeans have made this journey for jihad, with one of the largest contingents coming from Belgium. Belgian authorities estimate the number to be possibly as high as 80 individuals.

Among them is Jejoen Bontinck, an 18-year-old from Antwerp. His story has been grabbing headlines in recent weeks because his father, Dimitri Bontinck, is now in Aleppo in a desperate search for him, posting dramatic updates on Facebook.

The father has said his son was "brainwashed" by members of the outlawed Islamist organization Sharia4Belgium who befriended him in a city park.

Brian de Mulder, a 19-year-old also from Antwerp, is known to be there too, also drawn in by the shadowy group.

When family learned he was in Syria earlier this year, they held a joint press conference with the openly anti-Muslim Belgian nationalist party, Vlaams Belang, calling on the government to do more against Sharia4Belgium and its ilk.

After Belgian authorities raided four dozen houses and arrested six on suspicion of supporting terrorism last month, De Mulder, now known as Abu Qasem Brazili, sent the family a message saying he never wanted to see them again.

They weren't the only ones.

Two 16-year-olds from the Brussels suburb of Schaerbeek went missing for a few hours during their school's Easter break. They then called their parents from Turkey to say they were headed into the Syrian war zone.

The mother of one of the teens flew to Turkey immediately, coming back to Belgium days later heartbroken, with no information about her son.

With little or no contact with their kids, families are left scouring Al Nusra public relations videos, looking for confirmation their children are still alive.

Such YouTube videos were one of the first signs of proof the Europeans were there fighting with the Islamists, says Hicham El-Mzairh, an Antwerp city councilor with Muslim roots who knows several of the young men who've gone.

El-Mzairh points to a video, posted by a group he says is an offshoot of Al Nusra, of a firefight in which two of the young gunmen speak to each other in Dutch with what El-Mzairh describes as an unmistakable Antwerp accent.

Also unmistakable is the fact the two Flemish youth are rather new to this lifestyle, scrambling awkwardly up sand banks with their weapons.

"Abu what's-his-name," one says, in Dutch, addressing the other, before remembering his colleague's new name. "Abu Basir," he goes on, "only shoot when you see them."

While this exchange in Dutch has earned a few chuckles — and even its own Facebook page — the larger picture is dead serious. These young men are now instructed in techniques to kill, instilled with a hatred of the West, their home countries. Their families want them home; the rest of society isn't so sure.

Threat of their radicalized return

Europol, the European police network, has just released its annual threat assessment, showing officials are taking stock of this problem.

The police force has noted "increasing numbers of radicalized [European Union] citizens traveling to regions of conflict to engage in terrorist activities," Europol Director Rob Wainright wrote in the report.

"There is growing awareness of the threat posed by these people, should they return to the European Union intent on committing acts of terrorism," he added.

Next door, the Netherlands has already ticked its national security level up a notch specifically because it learned so many Dutch residents had gone to the Syrian battlefields.

El-Mzairh, long active in Antwerp's large Muslim community, says the alarm is justified. Long before the exodus to Syria raised new concerns, he'd been warning city leaders that Islamic radicals were making use of schools and parks to recruit young Belgians by exploiting a weak sense of community and inadequate guidance from old-fashioned imams in practicing tolerant Islam integrated with European norms.

"If we don't give them answers, they go to the internet," he says, where they "become hypnotized" by the likes of Al Nusra. "The biggest recruiter is the internet, it's YouTube."

And now, El-Mzairh says, the stringent Islam they've embraced to "fill the emptiness," as he describes it, is "also asking them to kill people that try to stop them. So they've got a holy book in one hand and a weapon in the other."

The Belgian government is at a loss over how they can be stopped. Border controls should be strengthened, most people agree. Another suggestion is to take away identity cards from those deemed vulnerable to extremist influences, so they can't leave the country.

Schaerbeek Mayor Bernard Clerfayt scoffs at that idea, even after the two teenagers who were schoolmates of his own children ran away to Syria. His town is half Muslim, half Catholic or other religions, and he says there's no way he's going to punish the entire Muslim youth population for the acts of relatively few.

"It's impossible," Clerfayt says, "to know which kids want to go to Syria. The two who did leave recently showed no signs they would do it."

What Clerfayt has done, controversially, is to shut down some of the free food distribution services at the local train station. Clerfayt says he learned there was radical Islamist propaganda being handed out with the meals and believes this connection may have been the link between the young teens and Syria.

While he's received some criticism for the move, Clerfayt says the vast majority of his municipality's Muslim population is grateful.

"They say, 'That's not the way we live our religion here,'" he said. "They are happy if I protect their kids from that form of radicalism."

Clerfayt says tips about extremists hanging around the mosques came from the members themselves. This kind of localized warning system is what is being attempted on an EU-wide scale with the Radicalization Awareness Network, or RAN.

The program is spending nearly $10.5 million per year to link up community members from schools, religious institutions, health care and other sectors throughout the 27 member states, encouraging dialogue and exchange of best practices as well as training them how to identify signs of radicalism before an individual becomes dangerous.

European Commission spokesman Michele Cercone is realistic about the program's chances for success. "It's not that we'll have concrete results in the short term nor that we'll probably convince those that are already radicalized or who have extremist views to change their mind," Cercone said. "But we certainly can plant the seed of doubt."

Hicham El-Mzairh agrees that grassroots prevention is the only hope to identify those who may turn on their own families and communities. But he says this is going to be harder than the conventional "war on terror" the public is familiar with, because you can't see it coming.

"They are our kids," he said. "They don't have beards; they have gel in their hair. They are talking about Beyonce one day but the next day jihad in Syria."

Bujhate Diye Ki Dhadhak

Falling economies are trying to get something done at the very end, before the world may get completely changed, as already to an extent, as we can see even right now.......

US/West want to ensure their stake in this world before they will have lost their full credibilities, and their different wars every year like Libya war in 2010, and then they switched to Syria war since 2011, with Afghanistan going on/ Iraq war just finished, etc. along with different political/economical wars they have organized in this world, is nothing but to get something done by this or that way :agree:. but one thing is fully confirmed that they can't build their own society, they also know this fact, and hence they have to get something done in other countries now to ensure free Welfare/Free medical etc for their under high school passed people, along with bringing the most competent migrants of rest of the world to develop the best technologies for their industries this way....... I have said before too, Mr Bill Gates is the richest man of the world, not because he sold the technologies developed by their own American people, but it were the high qualified migrants..... and if these industries move to developing countries, as already to China/ASEAN/India etc we can see, then obviously we will now have process improvements/ upgraded technologies in the countries where these industries are now based.......

First these so called "Industrialized Nations" have lost their industries to China/Asia, and at the same time, their service/design/marketing infrastructure based in West is also taking last breath :wave:. and before these Industries will finally move back to US/EU, hopefully by 2018/22 as I have estimated, and it will be the case when labor cost of US will fall below to China and hence making the production cost cheaper in US this way. and before they reach this certain state, towards which they are moving with a set space, they want to get something done in other countries before this certain fall of US/EU gets established :facepalm:

nothing came from sky and nothing will ever come from sky :nono:. whatever is new today will be old tomorrow and we need those people who may develop new technologies and improve the existing ones, and its possible only when they may maintain a grip on rest of the world, on the best talents of this world, along with keeping industries with their products "competent enough" to sell them in developing countries itself from where they get the most competent migrants..... while on my side, I may share my own experience that even '15%' price difference is enough to lose a project, no matter how much efficient/less maintenance required etc Western products you offer :wave:
 

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