Global Economy (crisis)

AP Photo/Shakil Adil -

Already an anemic economy is expected to weaken in Pakistan and increasing the poverty that is a factor in the militancy wracking the country. Flooding in Pakistan has affected nearly 14 million people and left 1,500 people dead.

Pessimism over the US economy is rising. Nearly six in 10 of those surveyed said the country is headed in the wrong direction. Republicans must gain 39 seats in the House and 10 in the Senate if they want to win majorities in both chambers. If they do take control of one or both chambers in Congress, it would slam the brakes on Obama’s legislative agenda. Read more at >

All three major indexes posted their worst percentage drop since July following the Federal Reserve’s bleaker assessment of the economy on Tuesday. The U.S. central bank said it would take steps to hold down borrowing costs. However, some traders questioned how effective these measures would be.

The United States racked up a $165.04 billion budget deficit during July, 8.7 percent below the year-ago gap as economic stimulus. The shortfall between the government’s income and its spending totaled $1.169 trillion, smaller than last year’s record 10-month deficit of $1.267 trillion.

Obama administration trimmed its full year fiscal 2010 deficit forecast by $84 billion to $1.471 trillion — a level that still represents a record. And in a sign that deficits will remain stubbornly high for some time, the White House raised its fiscal 2011 deficit forecast by $149 billion to $1.42 trillion.

July’s deficit marked a 22nd straight month of red ink for the U.S. government, the longest string on record, due to heavy spending aimed at pushing the economy out of a prolonged slump, coupled with weak tax revenues.

The United States is selling fewer products around the world and spending more on cheap imported goods, an imbalance that hurts the job market at home and means the economy is even weaker than previously thought. The trade deficit of nearly $50 billion for now and is the biggest in almost two years.

The U.S. dollar slid to a 15-year low against the Yen , dragged down by the anemic recovery in the world’s biggest economy. Dollar quoted at 84.71 Yen, the lowest since 1995. Investors stepped up selling of dollars after the Federal Reserve announced Tuesday 10.8.2010 additional monetary easing steps in a bid to shore up the flagging U.S. economy. The central bank also downgraded its assessment of the economy’s prospects. Yen’s recent rise against the dollar has punished shares of Japanese exporters, as it makes their products less competitive in overseas markets. It can also reduce the value of profits made overseas when they are returned to Japan.

It just confirmed that the U.S. economic recovery is slowing.

And ofcourse they have they own (latest) US floods.

And what about this opinion? ZEITGEIST – Addendum
Just keep this in the mind..

Zeitgeist 2 is out
read more


2 responses to this post.

  1. […] August 12, 2010 at 01:12 | #2 Global Economy crisis « Lacobral's Blog […]

  2. […] the post Global Economy (crisis) […]

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