The next global recession can be expected around 2012, said investor Jim Rogers. It may, however, is much more severe since then central banks will be able to pour so much money on the market because of inflation, which will raging, he said, quoted by CNBC. Today, the RBI decided to increase interest rates, thereby joining countries such as Canada, Norway and Australia did the same. The reason for increased interest is the danger of inflation and the rapid economic development. “The world is inflation, while most central banks to deny,” said Rogers and stated that every four to six years in the U.S. has recession. This leads him to believe that the next recession will occur in particular around 2012. “When she came, the world will be in far worse condition, as will already have exhausted all the bullets. Does Bernanke will print more money? No, I will do the trees in the world, “said Rogers. According to Rogers, the fact that the profits of U.S. companies are above expectations does not mean at any cost, that recovery is stronger than expected. “I’m sure part of that relates to expectations, but remember what you compare. Talk about the second quarter of 2009 when we thought that the world ends, “said Rogers.
(more…)

New recession in the euro area is unlikely, a depreciation of the euro will help reduce the negative effects that have measures to reduce the debt on economic growth, says Pier Carlo Padoan, chief economist of the Organization for Economic Cooperation and Development (OECD) said from CNBC. Governments need to pursue fiscal consolidation and reforms in the pension insurance system and labor market to promote economic growth, said Padoan. To convince skeptical financial markets in the effectiveness of its strategy, governments should also show that the coordinated work, he added. Even measures to reduce the debt limit growth in the eurozone, it will be partly offset by increased demand for European goods from Asian and other markets due to their better competitiveness resulting from weaker euro, he said. According to data from the European Central Bank the value of the euro against the U.S. dollar declined by 14% this year, while trade-weighted value of the euro has decreased by more than 10%. “Will there be a” W-shaped “recession in Europe? I do not think, “said Padoan, emphasizing that the massive debt following the global recession in 2007 – 2009,” is not just European history “and that Europe will deal with this problem faster than others.
(more…)

The Russian economy out of recession and began to recover, Prime Minister of Russia Vladimir Putin during an extensive report today on the work of the government last year exported to the State Duma, Russian media reported. According to Putin recession ended the Russian economy and now also the conditions for progress are very good. According to the Russian prime minister that does not mean that the country has gone out of crisis but the recession has ended. Putin reasons that make those findings justify its latest data on the development of Russian economy. He stated that preliminary results for first quarter suggest optimism – the growth of industrial production reached 5.8 percent, while real incomes have risen by 7.4 percent. Russian Prime Minister added that it is very likely the official forecast of growth of gross domestic product for 2010 from 3.1% to be exceeded and it reaches about 4%. Putin noted that the key sectors of the real economy and financial system out of the global test and enter into good shape. Putin stressed in his speech that it is necessary to keep the trend from last year to decrease inflation, when it slowed to 8.8 percent (the lowest level of 18 years) for this year is on average 5-6 %.
(more…)

Bill Gates, who is the richest man in the world, said today that the U.S. economy and will take years to recover from the recession ST. Moreover, he added that he expects the taxes in the United States will grow to be able to balance the budget. These forward Reuters, citing an interview, which gave Microsoft co-founder of ABC. Gates also warned about excessive government interference in financial matters and urged the President Barack Obama to focus on longer term goals such as education and prevention of the consequences of the deepest recession since the Great Depression. When such a crisis happens, take years of economics, “to dig up,” said Gates. The budget is already quite razbalansiran and even to return the economy back on the road to rise without changes in tax policy and the holder the right fiscal framework will remain on minus. At any time the financial markets will vzrat in this hole and it can not but cause problems, added technocrats. Microsoft co-founder said that “everyone is confused and difficult to slow economic recovery, but I think there is any magic wand with which the Government to expedite the process”
(more…)

The head of the International Monetary Fund Dominique Strauss-Kahn warned that the world economy can survive the next round of reduction and to get into the so-called dual recession, reports BBC. He advised the parties not to suspend incentive packages for the housekeeper, who last year brought to curb the decline in the national economy. He added that currently China and Asian countries contributing most to economic growth fragile. Economic recovery in developed countries has so far been weak. To see a stronger upward movement should be improved consumer demand and reduce unemployment. He however assured that this year would increase the IMF forecast growth of world economy.
(more…)

Recession, which is undergoing U.S. economy begins to affect the courts. This is evident by the huge number of cases brought this year, many of them one way or another connected with the economic crisis. Only in New York is expected to finish the year with a record in the history of 4,7 million cases, but many say is just beginning influx of claims, because trials generally come late to the crisis, reports New York Times. Information indicating that the majority of the cases are related disputes caused by the economic crisis. In the present case is not about processes which are considered bad debts or unpaid trade relations. In many cases, the cases are related to domestic violence caused by economic stress – loss of job or housing, says the material. Estimates are that cases of settling commercial disputes will rise by 9 percent from last year. Obvyavane processes of delinquent mortgage even increased by 17 percent. Meanwhile in New York area criminal cases increased by 7 per cent, and in less severe disorders has increased by 18 percent compared to last year. Evaluations of judges and lawyers suggest that such growth rates are typical for times of crisis, when even minor offenses such as theft in small increase due to the fact that many people lose their jobs. Therefore, a large part of criminal cases can also be attributed to cases arising from the crisis.
(more…)