Global economy

The Next Financial Crisis Is Not So Far TAGS: | | | | |

After 2008 crisis, exponential growth peaked in financial markets. S&P 500 Index, Dow Jones Industrial Average, NASDAQ Composite, FTSE 100 Index rose dramatically. It seems like this is a bubble and will burst and cause a new financial crisis and I think it is not so far. “The “perpetual money machine” will suddenly broke. I made a research and found that graphs are so similar just before Great Recession and at some point, early 2000 recession.

Photos below illustrate correlations among daily high prices, standard deviations and forecast prices. Price versus time

FTSE historical chart

Another symptom of financial crisis is LIBOR rate. LIBOR rate is moderately rising.

Unemployment is the United States of America is between 4-5% which is almost the same just before 2008 crisis.

UK unemployment rate is also similar to 2007-2008.

As well as, EU unemployment rate.

In conclusion, there are a number of potential triggers to a new crisis. Equity prices, Brexit, US Presidential Elections, slowing down of Chinese economy and some overvalued rates. Maybe one of these reasons will trigger a new financial crisis.

Most peaceful countries in the world TAGS: | | |

Global peace index world map

The Global Peace Index, issued by the Institute for Economics and Peace, ranks 162 independent states covering 99.6% of the world’s population.

The 10 most peaceful countries

Iceland
Denmark
Austria
New Zealand
Switzerland
Finland
Canada
Japan
Australia
Czech Republic

The 10 least peaceful countries

Syria
Iraq
Afghanistan
South Sudan
Central African Republic
Somalia
Sudan
DR Congo
Pakistan
North Korea read more

USA China economy, economic powers

TOP 5 largest economies in the world TAGS: | | | | | | |

usa-china

China was recognized as the world’s second-largest economy after the United States.

1. USA – GDP $17.5 trillion

The USA has secured its status as the world’s most powerful economy, a position it is predicted to hold for the next decade.

For at least almost a century now, the United States has consistently ranked as the biggest national economy in the world. read more

What is Economic Development? TAGS: | | |

No single definition incorporates all of the different strands of economic development. Typically economic  development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of quality of life. read more

Inequality of Wealth in America TAGS: | | | |

us inequality

Video showing through the awesome graphic truth about the distribution of wealth in the United States.

According to Wikipedia, in 2007, the top 10% wealthiest possessed 80% of all financial assets. In 2007 the richest 1% of the American population owned 34.6% of the country’s total wealth, and the next 19% owned 50.5%. Thus, the top 20% of Americans owned 85% of the country’s wealth and the bottom 80% of the population owned 15%. In 2011, financial inequality was greater than inequality in total wealth, with the top 1% of the population owning 42.7%, the next 19% of Americans owning 50.3%, and the bottom 80% owning 7%. However, after the Great Recession which started in 2007, the share of total wealth owned by the top 1% of the population grew from 34.6% to 37.1%, and that owned by the top 20% of Americans grew from 85% to 87.7%. The Great Recession also caused a drop of 36.1% in median household wealth but a drop of only 11.1% for the top 1%, further widening the gap between the top 1% and the bottom 99%.

According to PolitiFact and others, in 2011 the top 400 Americans “have more wealth than half of all Americans combined.”
In 2013 wealth inequality in the U.S. was worse than in most developed countries other than Switzerland and Denmark. In the United States, the use of offshore holdings is exceptionally small compared to Europe, where much of the wealth of the top percentiles is kept in offshore holdings. While the statistical problem is European wide, in Southern Europe statistics become even more unreliable. Less than a thousand people in Italy have declared incomes of more than 1 million euros. Former Prime Minister of Italy described tax evasion as a “national pastime”. read more

The difference between Keynesianism and Suppy Side Economics TAGS: | | | |

keynesianism and suppy side economics
Unlike the Keynesians, Supply Side Economics did not agree that such a tax cut would necessarily cause inflation. Instead, the supply siders believe that the American people would actually work much harder and invest much more if they were allowed to keep more of the fruits of their labour. The end result would be to increase the amount of goods and services our economy could actually produce by pushing out the economy`s supply curve. Hence, supply side economics.

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