Wednesday Water Cooler
No New Stimulus From The Federal Reserve
Chairman of the Federal Reserve Bank Ben Bernanke says that despite the poor growth in the economy, the Bank will not inject further stimulus into the economy and also warned Congress of the consequences of falling off the fiscal cliff.
“The realization of all of the automatic tax increases and spending cuts that make up the fiscal cliff, absent offsetting changes, would pose a substantial threat to the recovery — indeed, by the reckoning of the Congressional Budget Office and that of many outside observers, a fiscal shock of that size would send the economy toppling back into recession,” Bernanke said in a speech on Tuesday.
Is Globalism In Retreat?
It has become conventional wisdom that the world and globalism is more entwined than ever. But some economists examining global trade trends have found that after decades of vibrant trade, more countries are now trading less.
“”But the most recent 24 months show something that looks an awful lot like a trade shock. It isn’t just that trade is no longer doubling — it’s slowing. In some crucial areas trade growth has slipped below GDP growth — and this year, globally we’ll be below the 20-year average rate of trade growth yet again. Figures on investment in assets held overseas, probably the best indicator of enthusiasm for globalism, are drifting down toward 40%, from more than 50% in 2008,” writes Joshua Cooper Ramo in Fortune magazine.
British Public Divided On Whether To Leave The Euro
A recent Ipsos poll found that a little less than half (48 precent) of Britons polled would favor voting to leave the Euro with the remainder divided between staying in either partially or fully.