Posted on 09/30/2014 6:34:45 AM PDT by blam
Tomas Hirst
September 30, 2014
The hot debate in financial circles at the moment is exactly when the Fed (and/or the Bank of England) will start raising rates as the economic recovery picks up steam. However, the authors of the Geneva Report suggest talk of the crisis being over is seriously premature.
Six years on from the financial crisis, people were expecting a global economy less reliant on debt financing and gradually moving back toward trend growth. According to Luigi Buttiglione, Philip Lane, Lucrezia Reichlin, and Vincent Reinhart, we instead have global debt-to-GDP breaking new highs and a permanent decline in output.
Why has this happened?
Firstly, while the developed world has been gradually reducing its debt overhang emerging market debt trajectories have been moving firmly in the other direction. China in particular has seen a sharp rise in its debt-to-GDP ratio:
(snip)
(Excerpt) Read more at businessinsider.com ...
Here is how the general population is feeling the great recession, from 2008 to 2013.
Almost 50% inflation on the essentials such as food, gas, toiletries, etc.
And yet, income declined by 10%.
While US Census showed median income went from $56,000 to $51,000.
Even the government BLS numbers show unemployment at 20%.
http://www.bls.gov/news.release/empsit.t02.htm
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