By James McKee
The International Monetary Fund has released its estimates of the world economy’s growth in 2011 and the numbers are good. Forecasted overall growth is in excess of 4 percent however; this growth is overshadowed by the national debt owed by many Western countries and a stagnant unemployment rate. With the recent problems being experienced in the United States and its European counterparts there is growing doubt with regard to what these numbers actually mean. Economic growth can be interpreted in a number of ways and while many are profiting many more still are not.
At the center of what is discouraging the world economy’s recovery is the persistent trouble in Europe. Countries such as Portugal and Ireland have become so financially insolvent that other countries such as Germany are left to pick up the pieces. Bearing this in mind much of the world’s economic fate resides with the EU’s ability to implement strong debt-relief strategies for its members to ensure financial solvency in the future. The Euro will be the first currency to fall and of course the USD will rise against it if there are more countries experiencing problems in the EU.
Germany is making strides to shoulder the debt of other countries in the EU while steering them towards progress however; it is nearly impossible until the way out of debt with regard to central banks is figured out. In many countries currently the amount owed to their central banks is greater than the money supply, this raises the question of how the debt can ever be paid off. Those on the Forex currency exchange should stay up to date on countries in Europe that are becoming unstable and act accordingly with regard to the Euro. There is a strong chance that China will step in to buy European debt sometime in the near future but if they do they will be buying more from the United States…
About the Author
The author’s love of life is ultimately rooted in his drive to learn forex
