The world a "deficit tide" cast a shadow over the economic recovery - the economy, the deficit, the crisis - construction machinery

The world a "deficit tide" cast a shadow over the economic recovery - the economy

, the deficit, the crisis - construction machinery

The world a "deficit tide" cast a shadow over economic recovery

2009 9 Month "Economist," the author warned that, despite the 30 years since the last century, the most serious " Financial Storm "behind us, but serious form of government deficit will be another economic crisis. For the moment, following the crisis in Dubai, the world of Greece, Spain and other countries worry about the deficit level, there seems to be spreading to the euro area; from Greece to the EU, from EU to the United States, countries have introduced a number of vice "drastic" cuts in government deficit. But the situation in the fragile economic recovery, the national launch of the deficit reduction plan faces many obstacles and risks, which is shrouded in the world a shadow over the economic recovery.

Alert Deficit beyond the multinational "security line"

PRC in 2009 if countries worried about the global economy has yet to "bottom", then entered since 2010, countries began to worry about the economic stimulus plan for bringing the global deficit. From Dubai to Greece, from Greece to the euro zone, from Britain to USA, Europe and the United States the core countries in developed economies large government deficit, as the development of chronic malignant "tumor", eroding the global economy has not fully recovered.

Deficit crisis spread of the euro area

Set by the European Union, "Stability and Growth Pact", the euro area member states must comply with a deficit of 3% of GDP, control of such standards. Although this is a flexible reference value, but since last year to address the financial crisis, the eurozone and the United States and other developed economies, the government deficit in excess of, or even far beyond GDP3% of the reference to "alert line."

Data show that the Greek government deficit in 2009 accounted for more than 12% the proportion of GDP, Ireland in 2009 the government deficit ratio of approximately 10.75% of total GDP, Spain, in 2009 the proportion of government deficit over GDP, 10%, the highest in the euro area deficit the top three. From the moment, the three seems to be a deficit crisis spreading to the entire euro zone. In addition, the French budget deficit by 2010 will account for 8.2% of GDP; the German budget deficit in 2010 will account for 5.5% of GDP in 2010, the overall deficit in the euro area may exceed 7% of GDP, the 27 EU member states appear in 20 excessive deficit, the European Union issued a warning signal for this frequently.

The same, since Obama 2010 to 2011 budget, the U.S. concern about the huge deficit. The White House expects the federal government in fiscal year 2010 deficit will reach 1.6 trillion U.S. dollars, accounting for 10.6% of GDP, which is the highest percentage since World War II. Moody's Corporation 3

warned that if U.S. economic growth lower than expected, or the Government does not take more stringent measures to address the deficit, America's top AAA grade sovereign credit rating will be under pressure.

High deficits lead to financial turmoil

Entered since 2010, Greece, Ireland, Spain, Portugal, after Dubai to become triggered a global concern, and thus lead to financial instability in several countries. January has been the face of the Greek government deficit data, the introduction of the euro has fallen sharply once, but face a deficit of 2009, Spain has a deficit of over GDP10% of high-risk situation, the International Monetary Fund, the European Central Bank and the Standard & Poor's and other institutions have expressed concern. Spain or Portugal, Greece will step followed the financial crisis, the incident became the focus of the parties.

Huge deficit the euro zone, has become a global recovery in one of the biggest risk. ECB worries that the euro zone government deficit expansion, may induce the reduction in sovereign ratings, the financial market confidence is hit; States must try to bring the deficit down to the "alarm level" below.

More than 36 trillion global debt

Global deficit high, it is accompanied by soaring global debt. As early as last September, "The Economist" magazine began to focus on the fiscal deficit brought about by the global debt crisis, created a "global government debt clock," real-time informed of the global debt situation. As of February 2010, total debt countries in the world break 36 trillion U.S. dollars; by "global government debt clock," the statistical forecast, 2011, the debt will exceed 40 trillion U.S. dollars worldwide. "Debt clock" shows, including the United States, Canada, Japan and the euro area is the liabilities of the worst countries.

2 8 issue of "Forbes" magazine cover of "global debt bomb" in the title of the continuing expansion of global debt phenomenon is discussed. Analysis, because of the revenue and expenditure situation of poor debtor countries had to "borrow life"; the other hand, the recession led to the need to send more debt, relying on public spending to stimulate the economy. Global, if not all countries GDP to grow at normal speed, old and new debt must suppress economic growth, low growth letting into unsustainable debt cycle, which is a terrible outcome. In order to prevent the vicious cycle into a debt crisis, debt powers to discipline themselves and change bad spending behavior. Once a lot of debt to maturity is insolvent when it will recur, like Dubai, the debt crisis, led the United States and a number of debtor "to hell."

The world a "deficit tide" cast a shadow over economic recovery

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