Skip to comments.FITCH PRESENTS: 'The Single Biggest Near-Term Threat To A Global Economic Recovery'
Posted on 09/27/2012 7:42:44 AM PDT by blam
FITCH PRESENTS: 'The Single Biggest Near-Term Threat To A Global Economic Recovery'
September 27, 2012
The credit-ratings agency Fitch gave a dire warning this morning on the looming fiscal cliff, saying it's the "single biggest near-term threat to the global economic recovery."
Fitch warned that if the spending cuts and tax increases go into effect at the start of 2013, it has the potential to engulf the U.S. back into a recession and would at least halve the global economic growth rate next year.
Here are the key bullet points from Fitch: Fitch would reduce its U.S. economic growth forecast from 2.3% to about 0.3% next year if the cuts and tax increases are enacted. The world economy's growth would increase just 1.3%, down from the 2.6% Fitch currently forecasts. It would be a disaster for export-oriented countries like China and Brazil, which would see the biggest GDP declines.
If Congress fails to act before the end of the year, a series of tax cuts and spending programs will expire and could shrink GDP by up to 4 percent, according to Goldman Sachs analysts.
Last week, The Washington Post reported that Republicans might consider a potential Barack Obama re-election to mean a mandate on enacting his plan to raise taxes on incomes above $250,000.
(Excerpt) Read more at businessinsider.com ...
They can’t stop spending - they’re just playing musical chairs until the whole thing goes boom - if they cut significantly anywhere there will be backlash so they’re likely hoping for global events to try and shift the blame - if you are not storing food and water you are not paying attention.
Gee...we’ve been in a recession, if not a depression, since 2009. We’ve been floating the Economy on BORROWED $$ that has been created out of thin air by the FED. At this point, the FED almost owns the Market for US Treasuries. This fiscal cliff is only a mild preview of what will happen when everyone discovers that the FED is the Emperor who has no clothes. Its going to happen sooner or later—count on it.