No Armageddon. Just Global Japan To The Second Power Is All...
First - Thanks everyone for stepping up the posting and participating this past week! We don't always agree, but we can agree to disagree while continuing to discuss and debate, and that keeps the community lively, interesting, informative, thought-provoking and enlightening!
Now I just want to pass along the some excerpts from (unbelievably) the top of the front page of CNBC.com this early Monday morning that highlight just how feeble and weak any global recovery is (if this really is one, and not just the up leg of a "W").
From CNBC.com
Weak Japan Machinery Orders Outlook Bodes Ill for Economy
Japanese manufacturers forecast a sixth straight quarterly fall in machinery orders in July-September, suggesting they remain wary of expanding their production capacity despite signs of a global economic recovery...
Manufacturers surveyed by the Cabinet Office forecast that core machinery orders, a highly volatile series seen as an indicator of capital spending in the coming six to nine months, would fall 8.6 percent in July-September from the previous quarter...
Japanese companies are expected to keep cutting back on capital expenditure to cope with weak demand both at home and abroad...
Bank of England to Warn of Deflation: Report
The Bank of England will downgrade its growth forecasts and issue a warning this week that the UK economy risks slumping into a debt deflation trap, the Telegraph reported on Monday...
The paper also cited former BoE monetary policy committee (MPC) member Sushil Wadhwani - now a hedge fund manager - as saying the current apparent upturn in the UK economy may be wiped out by another downturn next year.
Wadhwani told the Telegraph he saw growing evidence the UK was tracking a similar path to that of the Japanese economy in 1990s, which apparently recovered from its initial economic crisis only to fall into stagnation for decades...
"People think things will then return to normal - but these bounces are driven by temporary factors." "The second half of 2010 could be more difficult for the UK than 2009," he added.
"There will be a big fiscal tightening, the VAT (value added tax) cut will have gone; and the world as a whole will be slowing at that point. You will have several things coming together which will dampen the economy." ...
Second Stimulus Needed to Avoid Lost Decade: Krugman
The world economy needs a second stimulus if it is to avoid the fate of Japan in the 1990s when the country was stuck with years of sluggish growth, Nobel laureate and professor of economics Paul Krugman told CNBC Monday.
"Right now I think the world as a whole kind of looks like Japan in the early 90s. Not a catastrophe, but we really don't know how we get serious growth going," he said. "Actually the slump globally has been much worse than anything Japan had during that lost decade."...
Now I just want to pass along the some excerpts from (unbelievably) the top of the front page of CNBC.com this early Monday morning that highlight just how feeble and weak any global recovery is (if this really is one, and not just the up leg of a "W").
From CNBC.com
Weak Japan Machinery Orders Outlook Bodes Ill for Economy
Japanese manufacturers forecast a sixth straight quarterly fall in machinery orders in July-September, suggesting they remain wary of expanding their production capacity despite signs of a global economic recovery...
Manufacturers surveyed by the Cabinet Office forecast that core machinery orders, a highly volatile series seen as an indicator of capital spending in the coming six to nine months, would fall 8.6 percent in July-September from the previous quarter...
Japanese companies are expected to keep cutting back on capital expenditure to cope with weak demand both at home and abroad...
Bank of England to Warn of Deflation: Report
The Bank of England will downgrade its growth forecasts and issue a warning this week that the UK economy risks slumping into a debt deflation trap, the Telegraph reported on Monday...
The paper also cited former BoE monetary policy committee (MPC) member Sushil Wadhwani - now a hedge fund manager - as saying the current apparent upturn in the UK economy may be wiped out by another downturn next year.
Wadhwani told the Telegraph he saw growing evidence the UK was tracking a similar path to that of the Japanese economy in 1990s, which apparently recovered from its initial economic crisis only to fall into stagnation for decades...
"People think things will then return to normal - but these bounces are driven by temporary factors." "The second half of 2010 could be more difficult for the UK than 2009," he added.
"There will be a big fiscal tightening, the VAT (value added tax) cut will have gone; and the world as a whole will be slowing at that point. You will have several things coming together which will dampen the economy." ...
Second Stimulus Needed to Avoid Lost Decade: Krugman
The world economy needs a second stimulus if it is to avoid the fate of Japan in the 1990s when the country was stuck with years of sluggish growth, Nobel laureate and professor of economics Paul Krugman told CNBC Monday.
"Right now I think the world as a whole kind of looks like Japan in the early 90s. Not a catastrophe, but we really don't know how we get serious growth going," he said. "Actually the slump globally has been much worse than anything Japan had during that lost decade."...