Tuesday, July 31, 2012

A Euro Collapse Will Mean A Global Recession


Eurozone Break-Up Would Trigger £1 Trillion Of QE, See Banks Nationalised And Deep Recession, Warns Fathom -- Philip Aldrick, The Telegraph

A Eurozone break-up would plunge the UK into an even deeper recession than the last one, force the Government to nationalise the banks, and trigger a £1 trillion bout of money printing, leading economic consultancy Fathom has warned.

According to Fathom Consulting, the economy would shrink by 5.2pc in 2013 if the euro collapsed – a projection that former Bank of England deputy governor Sir John Gieve, speaking at Fathom’s quarterly Monetary Policy Forum, described as “modest”. In 2009, the worst year of the recent recession, the economy shrank by just 4pc.

The warning came as Moody’s, the ratings agency, lowered its UK growth forecast to just 0.4pc this year and 1.8pc in 2013, in the wake of the shock 0.7pc contraction in GDP in the second three months of the year. The Organisation for Economic Co-operation and Development separately said the economy would shrink this year as a whole.

Read more ....

My Comment: A sobering essay on what many are fearing will be the final outcome.

2 comments:

Unknown said...

We must anticipate the worst so we can be prepared for it. Acquiring a bill protection insurance s one thing, being able to be prepared financially by investing wisely beforehand will help us get by.

myhuonglequyen said...

Thanks for sharing, nice post! Post really provice useful information!

An Thái Sơn chia sẻ trẻ sơ sinh nằm nôi điện có tốt không hay võng điện có tốt không và giải đáp cục điện đưa võng giá bao nhiêu cũng như mua máy đưa võng ở tphcm địa chỉ ở đâu uy tín.