Recession--the Financial Cirsis.
http://www.lemonde.fr/la-crise-financiere/article/2009/04/23/recession_1184430_1101386.html#ens_id=1172969.
What do we hear in these last months? The birds of bad news, the media, have pressed the characteristics, nourished the uncertainty, fed the collective psychosis, and for a few, invented a world crisis which (of course) butters their bread. In brief, the press is so much used to hearing reproach of its interest in catastrophism that one is almost relieved by the (actual) news from the economic front.
God knows if they are wrong. In London, the government of Gordon Brown has presented this Wednesday, 22 of April, a “war budget": a massive injection of public money to sustain the economy. It is an historic public deficit in peace time (12.4 % of the PIB , to be doubled in one year), an explosion of British debt in three years to come and put vigorous fiscal pressure to re-enforce the high revenue. This a “return of class warfare” blared the Daily Telegraph. To say the least, it is the end of the love affair over the last fifteen years between the workers and the City. To the point where it raises the specter of an intervention of international monetary funds (FMI) plan for London as in 1976.
In Washington, the news of the previsions (specter) of the FMI had the effect of a cold shower. Again in January the Fund banked on a light progress of 0.5% world growth. The prediction however for 2009 showed (rather) a decline of 1.3%. (Though) the Chinese growth was +6.5% and India’s at +4.5% but these did not compensate for the decline in the other countries, and particularly compared to the USA at -2.8%. The perspectives are particularly somber in Europe with a decline in growth of 4.2% in the Euro-zone, and nearly -5.6% in Germany.
In Paris, finally, the economic minister, Christine Legarde sees “positive signals” in the automobile and real estate industries, while the Budget Minister Eirc Woerth, estimates that “the slope of the graph has started to level off”, while the Prime Minister Francois Fillon, seems closer to reality when he predicted a “strong recession” this year: and a fall of FMI growth of 3%, and unemployment which may pass the bar of 10% of the active population.
Without doubt this black scenario goes (well) to re-launch the debate on the economic choices of the government in the days ahead of the mobilization of May Day. The relative orthodox budget to which it is not taken to be contested, as in the majority, by all those who press for the adoption , by income tax and public dispensing, these measure re-launch more vigorously. And thus we are.
What do we hear in these last months? The birds of bad news, the media, have pressed the characteristics, nourished the uncertainty, fed the collective psychosis, and for a few, invented a world crisis which (of course) butters their bread. In brief, the press is so much used to hearing reproach of its interest in catastrophism that one is almost relieved by the (actual) news from the economic front.
God knows if they are wrong. In London, the government of Gordon Brown has presented this Wednesday, 22 of April, a “war budget": a massive injection of public money to sustain the economy. It is an historic public deficit in peace time (12.4 % of the PIB , to be doubled in one year), an explosion of British debt in three years to come and put vigorous fiscal pressure to re-enforce the high revenue. This a “return of class warfare” blared the Daily Telegraph. To say the least, it is the end of the love affair over the last fifteen years between the workers and the City. To the point where it raises the specter of an intervention of international monetary funds (FMI) plan for London as in 1976.
In Washington, the news of the previsions (specter) of the FMI had the effect of a cold shower. Again in January the Fund banked on a light progress of 0.5% world growth. The prediction however for 2009 showed (rather) a decline of 1.3%. (Though) the Chinese growth was +6.5% and India’s at +4.5% but these did not compensate for the decline in the other countries, and particularly compared to the USA at -2.8%. The perspectives are particularly somber in Europe with a decline in growth of 4.2% in the Euro-zone, and nearly -5.6% in Germany.
In Paris, finally, the economic minister, Christine Legarde sees “positive signals” in the automobile and real estate industries, while the Budget Minister Eirc Woerth, estimates that “the slope of the graph has started to level off”, while the Prime Minister Francois Fillon, seems closer to reality when he predicted a “strong recession” this year: and a fall of FMI growth of 3%, and unemployment which may pass the bar of 10% of the active population.
Without doubt this black scenario goes (well) to re-launch the debate on the economic choices of the government in the days ahead of the mobilization of May Day. The relative orthodox budget to which it is not taken to be contested, as in the majority, by all those who press for the adoption , by income tax and public dispensing, these measure re-launch more vigorously. And thus we are.
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