Voltaire Network
Controversial articles, opinions, authors’ views which are not necessarily endorsed by the Voltaire Network editorial board.
Uncertainties of world economy
by The Bank for International Settlements ( BIS)
Uncertainties of world economy Basel (Switzerland) | 29 June 2007
We republish an extract of the 77th Annual Report conclusion of the Bank for International Settlements. It seems that the globalization wreaked the traditional economic rules and that nobody more knows how to regulate ample economic or monetary crises. Although we can reasonably think that the global growth will continue in the years to come, there are strong uncertainties likely to oppose this tendency. The continuing overheating of the Chinese economy and the excessive growth of its currency and its credit let feel afraid of a sudden inflation. The foreign investments decline in the United States, as this country is transformed into an antiterrorist citadel, and the decline of its productivity gains call a new sensitive decline of the dollar which, in the context of the excessive debt of the US households can turn into a disaster. Besides, the financial institutions are very vulnerable as the inherent insurance risks to their loans became impenetrable. In other words, in case of (...)