[Bruce_the_vii]

France is now being embroiled in the interest rate uncertainty of the markets. It's spread from the PIGS to Spain and Italy and now to France. If I read the article correctly part of the problem is that France will have to foot the bill for the PIGS, and add to it's own costs. The developed world is in pretty sad shape economically.

http://www.theglobeandmail.com/report-o ... le2124872/

[martin14]

Britain is projecting 1.5% growth, with 5% inflation for 2011.

Can you spell stagflation ?

[saturn_656]

So that leaves Germany as the only large healthy (more or less) economy in Europe?

[andyt]

saturn_656 wrote:

So that leaves Germany as the only large healthy (more or less) economy in Europe?

Germany will start having problems as world demand for it's exports declines, while it's still expected to bail out the PIIGS. Nobody is immune from this. We either swim together or sink together.

[Bruce_the_vii]

I wonder what is going to happen. Of course the next few months will be telling. It maybe that the governments will have to run deficits to stimulate the world economy again. I wonder what would happen in Canada. Would Harper co-operate and run a larger deficit. I hate deficits but I understand the developed world's collective economy is sagging and deficits might be in order. Ugh. Actually Triple Ugh.

[DanSC]

Bruce_the_vii wrote:

The developed world is in pretty sad shape economically.

People in the developed world are living like they still have colonies sending extra-cheap labor and raw materials to fuel their economies, without actually having those colonies.

[Bruce_the_vii]

Yeah, that and they are car happy. The car sort of comes on top of the family budget and it's what the deficit spending is saving. It's saving the auto culture - because that's where the money could come from. That's the way of the world.

[andyt]

Bruce_the_vii wrote:

I wonder what is going to happen. Of course the next few months will be telling. It maybe that the governments will have to run deficits to stimulate the world economy again. I wonder what would happen in Canada. Would Harper co-operate and run a larger deficit. I hate deficits but I understand the developed world's collective economy is sagging and deficits might be in order. Ugh. Actually Triple Ugh.

I don't know how much more stimulation the world can take. We may be bumping up to our limits of growth and just don't want to admit it.

But if they do use stimulus, UIC provides the best return for the $$. It's quick and people who get it spend it for necessities, they can't sit on it.

The western world needs to figure out how to bring production back on shore. As Dan points out, it's a mugs game to send a lot of or jobs offshore because we get cheap trinkets in return. That game just won't play forever.

[martin14]

Bruce_the_vii wrote:

I wonder what is going to happen. Of course the next few months will be telling. It maybe that the governments will have to run deficits to stimulate the world economy again. I wonder what would happen in Canada. Would Harper co-operate and run a larger deficit. I hate deficits but I understand the developed world's collective economy is sagging and deficits might be in order. Ugh. Actually Triple Ugh.

Not triple, only double.


As in Double Dip Recession....


we're not done yet.

[Psudo]

andyt wrote:

We either swim together or sink together.

Are you saying that's how it should be or that's how things always are? Because that is not how things always are.

[BartSimpson]

martin14 wrote:

Britain is projecting 1.5% growth, with 5% inflation for 2011.

Can you spell stagflation ?

If that's what they're projecting you need to adjust for propaganda.

That would then translate to -1.5% growth and 10% inflation.