Blog 5: Who Will Salvage Economic Procrastination?-9/26/12

Germany, Brazil and China are our vital nuke-houses that drive our economy to greatness, but skeptics see an incoming turnout that could potentially create an even slower rise than 2.5% of global growth. Every country is indeed i need for their general contributed resources, but the three countries above are  most convenient for superior economic growth momentum. 

The Eurozone has even more unemployment than the U.S around 11% (U.S at 8%) while China has decreased unemployment at a mere rate of 6%. Investors are in fear over the two halves, between the wealthier northern nations (Germany, Finland, Netherlands) and the struggling southern nations (Greece, Spain, Italy and Portugal) whereby rescue plans from each region consider executing Spain's banks and financial systems. On topic of cutting down financial systems, Commerzbank, Germany's second biggest lender is considering to terminate ship financing units.

For starters, China has decreased and slowed down about an 8% annual growth rate which include companies like Burberry, BMW and Carrefour that would hurt economic if they were to impede. Recently, China has been focusing their funds on infrastructure to help innovative production accelerate, but as unsold goods are deteriorating away in warehouses they are now burdened with excess capacity. As China works on their infrastructure and is continuing to deregulate financial systems and monetary policies, Analysts seem to keep an open eye out for improvement during the third quarter. 

As the United States, we are reaching a fiscal cliff as tax cuts seem to be ending. Black workers are condemned to a 14.4% unemployment rate in regards to problems with social diversity, another accusation which can hypothesize fewer employment rates. In the next couple of years we will be seeing bacon and sausage prices going up (don't cry), but along with that a bond-buying program is in workshop to decrease mortgage and loan rates. Simplistically, the United States seems to remain the world's economic paramount despite the trade deficits. 

Brazil is also doing quite well with a 2.5% annual growth rate and is the sixth nation in the world to be at a well-rounded propelling rate. Like China, almost $60 billion will be invested in Brazil's roads, highways and railroads to provide an accelerated commercial tactic by building infrastructure. Even though their growth is still failing to stimulate under reduced interest rates, the Olympic Games will be held there in 2016 which will create an economic boost for them. 

http://www.bbc.co.uk/news/business-18815595

http://www.businessweek.com/news/2012-04-25/caterpillar-raises-forecast-as-construction-sales-rise