Posted on 11/29/2012 8:46:57 PM PST by bruinbirdman
The closer you read Willem Buiter's imperial uber-blick of the world economy, the more astonishing it becomes.
Citigroup's end of year forecast – Prospects for Economies and Financial Markets in 2013 and Beyond – is in essence a celebration of American revival and ascendancy. It sentences Europe to slow economic death.
The growth gap in 2012 between the US (+2.2) and the eurozone (-0.4) is the 2.6pc, the biggest since 1993.
Professor Buiter – Citi's chief economist – said this is not a one-off. The differential will widen to 3.4pc in 2014 and continue at extreme levels into the latter part of the decade.
The compound effects of this for year after year are dramatic. Europe will be left behind as an outpost of stagnation in a G2 world dominated by the US and China, with a string of emerging powers gaining ground but still far behind.
Euroland's nominal GDP will slip from 78pc of US levels this year to 66pc by 2025. India will overtake Germany by 2020. (German growth will be: 2013 (0.5), 2014 (0.3), 2015 (0.9). 2016 (1.1) — in other words, slow asphyxiation along with the rest of EMU).
On US decoupling:
"We expect very different recovery paths, reflecting differing policy choices in managing the deleveraging process, plus underlying differences in terms of the supply-side and energy availability. US real GDP per head probably will rise about 9-10% above the 2007 level by 2017 – clearly outperforming Japan’s "lost decade" (real GDP per head rose by 5% from 1992-02).
"By contrast, in the euro area, we expect continued recession in 2013 and 2014 and prolonged weakness thereafter — with ongoing financial strains and, over the next few years, Grexit (Greek exit) plus a series of sovereign debt restructurings. In the euro area and
(Excerpt) Read more at blogs.telegraph.co.uk ...
Not to worry. Obama will bring us in line with Europe.
How is this blamed on CitiGroup?
CitiGroup didn’t force those countries to spend themselves into oblivion
Talk about “piped reams” (a word with a curious etymology, I’m sure). They claim they are “delivering”. LOL! Yeah, they are delivering MBS and CDRs right into even MORE lever Hypos and Rehypos. There must be a Giant Asteroid coming in the next few weeks that only “they” know about. That is about the only LOGICAL explanation for a lot of the behavior we have seen from gummints and global banks in recent years. They know they don’t have to consider the future because there isn’t one. If there isn’t a planet killer coming then they ARE!
Friggin IPad. Piped reams? Really?
Delivering, too? Spellcheckers have just gotten way out of hand.
Etymology = from hitting the pipe in an opium den and drifting off into opium(pipe) dreams
And so appropriate when referring to Zero’s base.
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