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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Reports warn of facing the world to a new economic crisis

    Rocky
    Rocky
    Rocky
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    Posts : 280906
    Join date : 2012-12-21
    • Post n°1

    Reports warn of facing the world to a new economic crisis Empty Reports warn of facing the world to a new economic crisis

    Post by Rocky Sat 13 Jan 2018, 2:36 am

    [size=30]Reports warn of facing the world to a new economic crisis[/size]
    13/01/2018 10:10 | Number of readings:
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    [rtl]Trend Press / Agencies[/rtl]
     
     
    [rtl]Economists said boom times are usually the best way to "lose the roof", or to look at the soundness of policies and their resilience in the coming crisis .[/rtl]
     
    [rtl]With the strong economic growth achieved by America this period shows an urgent need to answer the question: "Is the policy available to cope with an economic recession coming?" .[/rtl]
     
    [rtl]In the third quarter of this year, the US economy grew by 3.2% during the three months ended September, compared to 3.1% in the second quarter of 2017 .[/rtl]
     
    [rtl]"The world's largest economy is not prepared for" political and economic "reasons to deal with any possible downturn, Barry Eishengren said in an article published on Project Sanctica .[/rtl]
     
    [rtl]Policy makers usually deal with economic stagnation through interest rate cuts, tax cuts, and increased remittances to the unemployed and other shrinking economies .[/rtl]
     
    [rtl]The Federal Reserve rate is still at 1.25% to 1.50%, with expectations that it will reach 2% in the case of three carry-overs this year, but that leaves little room for any potential recession before interest rates Zero .[/rtl]
     
    [rtl]In the last three times there has been an economic recession in the United States. The cumulative cut of the cumulative interest rate was about 5%, but this time the short-term recovery allowed only gradual levels of rate hikes, so the Fed still does not have enough room to handle . "[/rtl]
     
    [rtl]In principle, the Fed is able to launch a new quantitative easing program, as well as implement the idea of ​​negative interest, but the new board is likely to be less active and innovative than its predecessor, and will be criticized by the US Congress for any further expansion of the balance sheet .[/rtl]
     
    [rtl]Although fiscal policy is the clearest alternative to the inability of monetary policy to deal with a potential crisis, Congress has allowed tax cuts at the worst possible time, leaving no room for stimulus if needed .[/rtl]
     
    [rtl]Adding $ 1.5 trillion to the federal debt would underscore the idea of ​​not accepting deflation by allowing further tax cuts .[/rtl]
     
    [rtl]Financial policy is therefore less effective in the face of recession and less likely to be used when the state already has high public debt levels .[/rtl]
     
    [rtl]Instead of economic stimulus in the next downturn, Republicans in Congress can respond badly. If revenue falls and the trade deficit widens further, they will insist on cutting spending to return debt to its previous course . "[/rtl]
     
    [rtl]Congressional Republicans are expected to begin cutting spending from the supplementary feeding program, which provides food for low-income families, and then move towards reducing health and social care. Consequently, the burden of this reduction will be reflected on poor consumers who will reduce spending and overall demand .[/rtl]
     
    [rtl]At that point, American governments will move towards reducing the duration of unemployment benefits and food aid .[/rtl]
     
    [rtl]America is not the only one threatened with the inability to cope with deflation. The banks of Japan, the euro area and central Germany are not far from the Fed policy, even with the formation of a German government, the decision-makers will continue to refrain from using fiscal policy . "[/rtl]
     
    [rtl]Even international cooperation between the United States and the world in 2008 and 2009, which helped to emerge from the global financial crisis, is no longer in place after the Trump policies that raise the slogan "America First ".[/rtl]
     
    [rtl]There is one case for the world to help the United States in its next recession, confidence in its intentions .[/rtl]
     
    [rtl]In 2009, the US Federal Reserve extended dollar swap lines to central banks. Then, at the G20 summit in London in early 2009, the Obama administration committed itself to coordinating its fiscal stimulus with other government incentives. "Today, almost a decade later, Trump at a similar meeting . "[/rtl]
     
    [rtl]In the end, the long period of economic growth is not an effective indicator of the timing of the next crisis. The depth of the recession will depend on the cause of the crisis. The only certainty here is that growth does not last forever and that the crisis is coming at a time when it is not available. Policies capable of resolution.[/rtl]
     

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