Europe, U.S. all out of monetary tricks

[marmar]

via MarketWatch:



BEIJING ( Caixin Online ) — Industrial production is stalling in India, and its credit rating may be downgraded to junk. Power consumption in China has slowed to about half of last year’s level, while consumer price inflation remains stubbornly high.

It’s obvious the world’s largest emerging economies are no longer in a position to carry the global economy through tough times, as they did during the “recovery” years of 2009-’11. And that spells trouble for the United States and Europe.

The euro-zone economy may have contracted again in the first quarter; its data fits the stagflation model quite well. Inflation grew 2.6% in the first quarter, and gross domestic product is expected to grow no more than 0.8 % this year, rising from a low base due to a contraction in the second half 2011.

Stagflation also seems to be settling over the U.S. economy. A much-hyped recovery delivered a disappointing first quarter, with preliminary estimated GDP growth up 2.2% from the previous three months and the consumer price index climbing 0.9%, or 3.6% on an annual basis. ..................(more)

The complete piece is at: http://www.marketwatch.com/story/emerging-market-woes-to-shadow-us-europe-2012-05-07?dist=beforebell

[xchrom]

1. du rec. nt

[leveymg]

2. Recced for visibility.

No cowbell, however. If this is going the way it looks, a generalized global slowdown with cascading cross-market inflation of commodities and consumer goods, we could be headed into a global slump of indefinite duration and a downward spiral.

[elleng]

3. 'I suspect most countries will have to start taxing their citizens’ global earnings.'

I guess so!

Stagflation? What's U.S. inflation rate???

[Prometheus Bound]

5. Rising for things we need every day, like food and fuel

Falling in areas that are very painful, like housing and wages

So the overall relatively low inflation rate doesn't really tell us much.

[elleng]

6. Thanks. So another one of those 'statistics,' eh?

[girl gone mad]

4. Time for a real fiscal solution. n/t