The Daily Bell
January 3, 2011
‘Two-speed’ global recovery likely to continue in 2011: IMF … International Monetary Fund has said that the world economy is likely to see a “two-speed” recovery in 2011 with emerging markets witnessing stronger growth than advanced economies. Some emerging nations like India and China, however, are also facing the challenges of huge capital inflows and overheating. The global economy, which grew nearly five per cent this year, is being driven by good expansion in emerging countries while many advanced nations continue to grapple with sluggish economic activities… IMF chief economist Olivier Blanchard stressed that countries should focus on re-balancing activities, including structural measures and exchange rate adjustments. “Without this economic re-balancing, there will be no healthy recovery,” he said.” ‚Äď UK Telegraph
Dominant Social Theme: 2011 will be a good year.
Free-Market Analysis: This article (excerpted above) makes the case that the “emerging world” is going to support the “developed world” until the Greater Recession is finally undone. We don’t believe it. The world is getting poorer, not richer. In this article, we will try to supply some much needed perspective to the predictable happy talk emerging from globalist institutions and reported by the mainstream media.
Let us try to speak plainly about what has taken place in the West in the past three years. Western economies began to implode in 2008, beginning with the “mortgage meltdown” in the United States. But the culprit was not regulation, not bad private or public decision-making, not even greed. The culprit was the mercantilist system of central banking itself, which prints money from nothing under the color of law.