http://www.forexconspiracyreport.com/euro-zone-economic-contraction/
Euro Zone Economic Contraction
Despite predicting a three and a half percent global economic expansion in 2012 the International Monetary Fund expects a Euro Zone economic contraction. According to the IMF the Euro Zone economies will shrink by about three tenths of a percent this year and grow by just under one percent in 2013. The European economy, in fact, is number one on a list of concerns. There is a sense that Euro Zone fiscal austerity measures have been too strict, cutting off growth at a time when the collective European economies need to grow, produce jobs, and produce income to pay the debts of various Euro Zone economies. Besides the likelihood of Euro Zone economic contraction, the risk of Middle East problems driving up the price of oil, and a burst real estate bubble in China, are of continuing concern.
Euro Zone Economic Contraction
Although the IMF expects to see the collective world economy grow this year the fate of the world’s two largest economies, the USA and the European Union, have more to say about the final numbers than anyone else. As United States manufacturing expands , the USA appears to be slowly but surely extracting itself from the worst recession in three quarters of a century. On the other hand, there are plans for an even larger Euro Zone bailout fund as Spain threatens to replace Greece as the nation most likely to default on its sovereign debts. If things go worse than expected in the Euro Zone the global growth rate could be cut by a percent or even two.
The Arab Spring, Rebellion in Syria, and Iran Wants the Bomb
With Euro Zone economic expansion, reduced industrial activity in China, and an ever so slow US recovery one might expect to see low to moderate oil prices. But, whenever the Middle East threatens to blow up, oil prices scurry upwards. Foreign currency exchange rates then adjust as oil is most commonly denominated in and paid for by US dollars. When Syria’s President agreed to pull back his troops recently, the Forex response to a Syrian ceasefire was less than hoped for as traders, correctly, believed that the civil war would continue. Iran is said to be purifying uranium to a level needed for a nuclear bomb. The European Union, the United States, and others have been steadily applying economic pressure and Israel is believed to be considering military action. A blockade of or simply military action near the Straits of Hormuz would bottle up a substantial portion of the world’s oil supplies. This would not only drive up the price of oil but also wreak havoc with Forex exchange rates across the board.
Chinese Real Estate, Brazilian Exports, and Indian Peace with Pakistan
The Chinese real estate bubble may well burst this year, which would cause tremors in China and in Forex markets across the globe, Also, Chinese exports are down and China reported its first monthly trade deficit in more than a decade
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Contraction
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Contraction
3. Despite predicting a three and a
half percent global economic
expansion in 2012 the
International Monetary Fund
expects a Euro Zone economic
contraction.
www.ForexConspiracyReport.com
4. According to the IMF the Euro
Zone economies will shrink by
about three tenths of a percent
this year and grow by just under
one percent in 2013.
www.ForexConspiracyReport.com
5. The European economy, in
fact, is number one on a list of
concerns.
www.ForexConspiracyReport.com
6. There is a sense that Euro Zone
fiscal austerity measures have
been too strict, cutting off growth
at a time when the collective
European economies need to
grow, produce jobs, and produce
income to pay the debts of
various Euro Zone economies.
www.ForexConspiracyReport.com
7. Besides the likelihood of Euro Zone
economic contraction, the risk of
Middle East problems driving up
the price of oil, and a burst real
estate bubble in China, are of
continuing concern.
www.ForexConspiracyReport.com
9. Although the IMF expects to see
the collective world economy
grow this year the fate of the
world’s two largest
economies, the USA and the
European Union, have more to
say about the final numbers than
anyone else.
www.ForexConspiracyReport.com
10. As United States manufacturing
expands, the USA appears to
be slowly but surely extracting
itself from the worst recession in
three quarters of a century.
www.ForexConspiracyReport.com
11. On the other hand, there are
plans for an even larger Euro Zone
bailout fund as Spain threatens to
replace Greece as the nation
most likely to default on its
sovereign debts.
www.ForexConspiracyReport.com
12. If things go worse than expected
in the Euro Zone the global
growth rate could be cut by a
percent or even two.
www.ForexConspiracyReport.com
14. With Euro Zone economic
expansion, reduced industrial
activity in China, and an ever so
slow US recovery one might
expect to see low to moderate
oil prices.
www.ForexConspiracyReport.com
15. But, whenever the Middle East
threatens to blow up, oil prices
scurry upwards.
www.ForexConspiracyReport.com
16. Foreign currency exchange rates
then adjust as oil is most
commonly denominated in and
paid for by US dollars.
www.ForexConspiracyReport.com
17. When Syria’s President agreed to
pull back his troops recently, the
Forex response to a Syrian
ceasefire was less than hoped for
as traders, correctly, believed
that the civil war would continue.
www.ForexConspiracyReport.com
19. Iran is said to be purifying
uranium to a level needed
for a nuclear bomb.
www.ForexConspiracyReport.com
20. The European Union, the
United States, and others
have been steadily applying
economic pressure and Israel
is believed to be considering
military action.
www.ForexConspiracyReport.com
21. A blockade of or simply military
action near the Straits of Hormuz
would bottle up a substantial
portion of the world’s oil supplies.
www.ForexConspiracyReport.com
22. This would not only drive up the
price of oil but also wreak
havoc with Forex exchange
rates across the board.
www.ForexConspiracyReport.com
23. Chinese Real Estate, Brazilian
Exports, and Indian Peace with
Pakistan
www.ForexConspiracyReport.com
24. The Chinese real estate bubble
may well burst this year, which
would cause tremors in China and
in Forex markets across the globe.
www.ForexConspiracyReport.com
25. Also, Chinese exports are down
and China reported its first
monthly trade deficit in more
than a decade.
www.ForexConspiracyReport.com
26. Brazil, India, and Russia are also
expected to see slower growth
based on reduced trade as
these economies depend on
the USA and EU as customers.
www.ForexConspiracyReport.com
27. A Euro Zone economic
contraction will help drive down
growth prospects in these nations
and a more severe Euro Zone
economic contraction could
conceivably drive these nations to
low single digit growth in 2012 and
2013.
www.ForexConspiracyReport.com
28. A decidedly bright ray on the
horizon is the fact that India and
Pakistan are talking and that
could lead to a more stable
region.
www.ForexConspiracyReport.com
29. Forex and stability on the Indian
subcontinent are intertwined and
this could be the best news of the
year.
www.ForexConspiracyReport.com
30. For more insights and useful
information regarding the
Forex markets and foreign
currency trading, visit
