Worldwide Recession: Unemployment Near Depression Level, Poverty Is Still Spreading, Monetary Policy Is Fueling Currency And Trade Wars, And Inflating New Speculative Bubbles. SOROS Warned Of Japan’s New Monetary Policy Will Badly Affect The German Economy!!
January 24th, 2013
By Barry Grey, Global Research
The World Bank issued its biannual Global Economic Prospects report Tuesday, sharply downgrading its forecast for economic growth from its previous report released last June. The Washington-based international lending agency projected an expansion of the world economy in 2013 of only 2.4 percent, down from its forecast six months ago of 3.0 percent.
The bank said the global gross domestic product (GDP) grew by 2.3 percent in 2012, downwardly revised from its June estimate of 2.5 percent. It predicted that the world economy would grow by 3.1 percent in 2014 and 3.3 percent in 2015. These projected rates, lower than the bank’s June estimates, are insufficient to significantly reduce near-Depression-level jobless rates in the US and much of Europe or stem the spread of poverty.
The report demonstrates that more than four years after the September 2008 financial meltdown on Wall Street, there is no end in sight to the economic crisis. It points as well to the extent to which the economic policies pursued by governments and central banks around the world have benefited the wealthiest social layers at the expense of working people.
Moreover, the measures taken to avert a descent into deflation and financial chaos, such as printing trillions of dollars and other major currencies, are further undermining the monetary foundations of world trade and investment, fueling currency and trade wars, and inflating new speculative bubbles that are bound to implode.