In the newspaper “The Hindu” today, I read an article by Mr
C R L Narasimhan. He had written about the World Economic Outlook (WEO), a
report that was released by International Monitory Fund (IMF) on 16th
July 2012. The heading of the article “Not a robust picture” itself is
self-explanatory. As per the IMF release:
The same paper also reports on news released by Tax Justice Network in The Observer recently which makes very interesting reading. In a report prepared by James Henry, a former McKinsey Chief Economist, it is said that the elite global super rich of the world has stashed up black money of $ 20 Trillion in private banks in Switzerland and Cayman Islands. This money is being looked after by banks such as Credit Suisse, UBS and the investment bank, Goldman Zachs. As per Mr Henry’s estimates, about 92000 people (0.001% of the world population) owns $10 Trillion of the same. The guestimate is that the black money amount could be anywhere between $20 trillion and 31 trillion.
Where did the money flow out from? As per the report, it is from the developing world. It reiterates that the capital that had flown out of the developing world since 1970 would be more than enough to pay their debts to the rest of the world.
·
Though the global recovery from the last
depression is continuing, it is still very weak.
·
The economic growth in the Eurozone is close to
Zero
·
Germany & France posted positive growth but
at very low levels
·
France will grow @ 0.5% in 2012 which will be 1
% for Germany for the year
·
Greece, Portugal and Spain registered negative
growth
·
The growth is there is US but it is too low and
as a result, the unemployment there has not come down at all.
·
Emerging economies such as India, Brazil &
China are registering slower growth as compared to the past
·
The world economy will grow this year by 3.5%
·
US will grow by 2% this year
·
China’s growth will come down to 8% from 8.2 % which
was forecasted in April this year
·
India’s growth will come down to 6.1% % from 6.9% predicted in April 2012
IMF
is advising emerging economies to be ready to use both economic and macro
prudential policies to respond to a complex environment. It adds that the capital flows are likely to
be highly volatile, and exports to the developed economies will be very subdued.
There
isn’t much to cheer. For us in India, it
could be another bad year. When you add to it the policy paralysis that we are undergoing
on account of the non-cohesiveness in UPA coalition Government, you will
realize that we cannot expect anything normal in this year too. That would make
it two years of drudgery in a trot. The
Monsoon deficit this year of about 30% across the country, would only add to
the agony for us.
Ladies
& gentlemen tighten your belts and live on!
The same paper also reports on news released by Tax Justice Network in The Observer recently which makes very interesting reading. In a report prepared by James Henry, a former McKinsey Chief Economist, it is said that the elite global super rich of the world has stashed up black money of $ 20 Trillion in private banks in Switzerland and Cayman Islands. This money is being looked after by banks such as Credit Suisse, UBS and the investment bank, Goldman Zachs. As per Mr Henry’s estimates, about 92000 people (0.001% of the world population) owns $10 Trillion of the same. The guestimate is that the black money amount could be anywhere between $20 trillion and 31 trillion.
Where did the money flow out from? As per the report, it is from the developing world. It reiterates that the capital that had flown out of the developing world since 1970 would be more than enough to pay their debts to the rest of the world.
What
does it all say? Though there are many isms that rhetorically state economy to
be inclusive for everybody, in practice, it is all a big lie. The inequality
only had increased in the world with the money and power resting in the hands of
very few people.
Regret
that the news is not all that good. But that’s the way it is. What do you want
of it? It is up to you….. Work hard,
deceive, kill and loot. In any case, nothing makes any sense….. Cheers then!
