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World Bank Cuts Economic Outlook, Says Europe Is In Recession, Warns Developing Economies To "Prepare For The Worst"
This will hardly be a surprise to anyone with 3 neurons to rub across their frontal lobe, but at least it is now official.
- WORLD BANK CUTS GLOBAL GROWTH OUTLOOK, SEES EURO-AREA RECESSION
Bloomberg, which just released an embargoed summary of the World Bank action, summarizes it all.
- World Bank cuts global growth forecast by most in 3 yrs as euro area recession threatens to exacerbate slowdown in emerging markets, World Bank says in Global Economic Prospects report.
- Sees world economic growth of 2.5%, down from June est. of 3.6%
- Sees euro area GDP contracting 0.3% in 2012, compared with pvs est. of 1.8% growth
- World Bank estimates euro area entered recession in 4Q
- U.S. outlook cut to +2.2% from +2.9%
- Japan forecast cut to 1.9% growth from 2.6%
- China’s GDP growth will slow to 8.4%, unchanged from interim revised projection released in Nov.
- India forecast cut to 6.5% from 8.4%
And the punchline:
- World Bank urges developing economies to “prepare for the worst” as it sees risk for European turmoil to turn into global financial crisis reminiscent of 2008
- Even achieving much weaker outcomes is very uncertain
Morgan Stanley may want to revise their 37% Muddle Through probability outcome, to something more like 36.745% on this news.
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I've had a shitty week so far and I expect tomorrow to be the same.
Try eating cheese.
Ok, but they still can't have my chicken nuggets.
Is everybody in ZH but me off drinking together somewhere tonight?
Royale With Cheese
Do you know what they put on French Fries in Holland instead of ketchup?
Gimp juice?
World bank to ECB ... Print print print. Please for the love of God print.
I was really waiting for the World Bank to help us digest all of this.
I am sure all those numbers are right as rain.
Thank you World Bank.
Thank you.
Now I can take a breath and begin my day.
LOL
You beat me to it man but bravo. This was closely along the lines of what I was going to write. Hell, I'll give it a shot anyway.
1013 euros worth of propaganda.
The enemy is Das Leihkapital. Your Enemy is Das Leihkapital, international, wandering Loan Capital. Your enemy is not Germany, your enemy is money on loan. And it would be better for you to be infected with typhus, and dysentery, and Bright’s disease, than to be infected with this blindness which prevents you from understanding HOW you are under mined, how you are ruined.
http://www.whale.to/b/pound.html#16_(March_15,_1942)_U.K.(B16)_
Not really sure what to make of this...
It's the same shit different toilet
2010-
"The World Bank has warned that developing economies will face weak economic expansion and will suffer lingering difficulties in raising money – a cocktail of factors which will make them particularly vulnerable to instability for five to seven years."
http://www.telegraph.co.uk/finance/globalbusiness/7036475/World-Bank-warns-over-damage-to-developing-nations.html
Sooner or later they're gona' be right. It's the Ron Paul approach, say the same thing for 30 years and you're bound to be right sooner or later.
Unless you are right all along and people are too stupid to hear you out.
Uh-huh. In the eighteenth century, no such thing, nada, nothing. No one ever imagined such a thing. No sane person, anyway. Ah! Ah! Along comes this doctor, uh, uh, uh, Semmelweis, Semmelweis. Semmelweis comes along. He's trying to convince people, well, other doctors mainly, that's there's these teeny tiny invisible bad things called germs that get into your body and make you sick. Ah? He's trying to get doctors to wash their hands. What is this guy? Crazy? Teeny, tiny, invisible? What do you call it? Uh-uh, germs? Huh? What? Now, cut to the 20th century. Last week, as a matter of fact, before I got dragged into this hellhole. I go in to order a burger in this fast food joint, and the guy drops it on the floor. Jim, he picks it up, he wipes it off, he hands it to me like it's all OK. "What about the germs?" I say. He says, "I don't believe in germs. Germs is just a plot they made up so they can sell you disinfectants and soaps." Now he's crazy, right? See?
There is no right, or wrong, only popular opinion.
http://www.youtube.com/watch?v=eb46yXP211w
What is this everyone getting the centuries wrong today???
I hope you gave him a medal of some sort
By the look of things, I'm fairly certain its the same toilet too !!!
No election in 2012
Just 1 state of Emergency.. say, a financial crisis and COG kicks in, The Constitution is already suspended and the Bill of Rights doesn't even exist anymore after that NDAA S-1867 signing, so it's a very short step to lock down the USA and suspend elections. Yea, were there.. Viola! Instant dictator.
USSR Guns are worth more than Gold.
Fitch: Greece will be an orderly default. http://www.cnbc.com/id/46021999
Why the fuck would the banksters want a dictator when things are working perfectly well now?
Fucking getting tired of this stupid shit... heard it non-stop with Bush (did he end up with at third term? NO- passed quite easily to O), not Obama.
Yes, he did get a third term. I admit he is somewhat changed in appearance and has magically learned to speak English, his wife is may be somewhat younger and a littel beefier, but what is coming out of the White House is quite indistinguishable from him before. I defy you to prove it is not him.
Funny you mention that...I was thinking the same thing.
Agreed.. From what I gather, the Constitution is, err... was the firewall between We the People and an over reaching tyranicle Gooberment accepting kick backs and pay off's allowing Big Corp to run ruff shodd over the USA. Those documents were standing in the way.
Take the "job's Bill" for example, their plan was or is to send Coperation's to set up shop in States that accept Federal monies for sigining onto the jobs bill but it would relinquish State Soverignity to the Fed's at the same time, then move said Corperations into states that signed on.
Total Federal power and Corperate control over the USA seems to be their plan.
The Encyclopedia of Immaturity, Volume 2, pg. 134
"Forbidden Knowledge, 10 Things You're Not Supposed to Know"
1. In old buildings you can hack the elevator by pushing your floor simultaneously with the close button. You'll go straight to your floor.
2. Cold weather doesn't make you more liable to get a cold. Drinking more fluids, or taking exra vitamin C doesn't help, either.
3. Cats will get disoriented if you put packing tape on their backs.
4. Dollar bills are actually worthless. They're like notes to Santa. They're only good if you're parents (and the rest of the world) plays along with the joke.
5. The water in airplane bathrooms is dangerous to drink.
You left out that seagulls will explode, given an Alka Seltzer, or so I am told...
Nice. Like a drano bomb with wings. Could come in handy...thx hulk.
Oh, weaponized Seagulls, this could get messy...
But you've gotta catch 'em first. Easiest way is with a Rapala.
You guys are cracking me up. Keep up the good work.
Seagulls have no way to burp, no gastric valve once its down its down.. Throw hcunks of alka seltzer in the air alternating with popcorn etc.. Frankly its a cruel hand even for rats with wings..
The close door button >< in an elevator is not actually wired. True
Now THAT is just plain insidious!
The new normal
S+P downgraded various sovereign debt last Friday. They also downgraded the EFSF one notch over the weekend, thus stripping their pristinely stupid "AAA" rating. But just one notch?
This is ridiculous because we could wake up on any given day facing an outright "run" and the EFSF would be exposed as the Ponzi engine that it is.
How could it have been rated AAA in the first place? Various sovereign debt from Greece, Italy and today Portugal ...which if ...when... were to fail will take the Spanish banking system down... could not issue new debt OR survive without EFSF purchases of said debt. But what happens... if the EFSF were to have problems issuing debt of their own?
Do you see where this all leads to?
A buyers strike, all owners selling and outright panic.
This has actually already started to some extent and has been covered over here in the States and in Europe by clandestine purchases with "newly created" money. THIS sadly is the "new normal". ...And the worst part? The markets are just begging for more more more of it!
Monetization has ALWAYS lead to ruinous hyperinflation. This try will be no different, but what amazes is how many "smart people" they trot out in Wahington and on CNBC to tell us that this time will be different.
It won't be. ...Well...maybe a little different.
THIS time the monetization is not in one country or one region, it is everywhere! We now face the prospects where even the ratings agencies are telling us that "risk" of non payment is rising everywhere ... way after the obvious fact... and even IF investors went totally mad and decided to invest ALL new monies into sovereign debt, well, there just wouldn't be enough money!
The debt "appetite" ...actually , debt addiction that is now mandatory just to roll over old debt and pay interest... has gotten so large that the system is no longer generating ...nor has the ability to... enough cash flow to sustain the debt necessary for the sovereign's to continue.
No problem though, central banks will magically create what is needed!
"Debt saturation" levels had been reached as individuals and corporations needed to delever... sovereign govenments would bankrupt themselves to prolong the fantasy. Well, here we are and "they" have bankrupted themselves. Now, we have reached debt levels that are no longer sustainable on a "payback" basis by the sovereign's, NOR sustainable in amounts that the financial system can even provide.
The wall has been hit and THE only thing left is for central banks to magically create credits to provide to various treasuries. This "new normal" that exists is not sustainable. Just because no one wants to acknowledge it doesn't mean it does not exist. Math is math and the amounts of debt necessary to continue cannot be funded "internally", the money is just not there. We have arrived at Jim Sinclair's "QE to infinity" not out of desire, no, it is now out of necessity!
The numbers are just getting beyond stupid!
Our president has asked for another $1.2 Trillion increased debt ceiling to get us through the year ...probably only August... and the ECB has just run through 250 Billion Euros since Dec. 21 ...less than 3 weeks... and rumored to be announcing another 1 Trillion LTRO ...long term refinancing operation... very soon. The whole thing is toast beyond toast mathematically while CNBC parades the goatheads to tell us "tech is cheap" or "Pharmaceuticals are a buy".
The entire system is 100%, completely and totally bankrupt!
The governments are bankrupt which means their currencies are worthless and thus, everything saved in those currencies are worthless! Period! When all is said and done, history will remember this "new normal" as more infamous than when Fisher said back in 1929 that "we have reached a new and permanent higher plateau".
How could a "tulip bulb" be worth 30 houses?
How could a tech stock with no earnings have a larger market cap than Exxon in 1999? ... How could "no one" ...in the mainstream... not see this one coming?
It will all be so obvious after the fact...as it always is!
www.lemetropolecafe.com
"and in Europe by clandestine purchases with "newly created" money. THIS sadly is the "new normal". ...And the worst part? The markets are just begging for more more more of it!"
But... at some point the rubber meets the road. The string STILL cannot be pushed. They'll continue to rev things up, but ultimately they can't make people go further in debt via their pocketbooks (instead it's looking like they're wiring it via govts- what corporations can't do they get govts to do). Have to wonder, however, whether there's enough space to dump all the excess unwanted crap...
DP, forgive me for suggesting that you don't contribute to this thread.
That post was intelligent, prescient, erudite and pretty good.
IMHO.
+1000
Yeah, sounded a like like Jim Quinn. ;-)
"Monetization has ALWAYS lead to ruinous hyperinflation. This try will be no different, but what amazes is how many "smart people" they trot out in Wahington and on CNBC to tell us that this time will be different.
It won't be. ...Well...maybe a little different."
CNBC is smart... SMRT!!
Steve Liesman parody below
http://www.youtube.com/watch?v=DhrfhjLd9e4
+++ Gary Kasparov, or Vishy Anand, would not have said it more clearly; the road to checkmate is traced out very clearly!
Based on the current market conditions, the probability of a global recession is near 0. Everything has been priced in including the death of Bernank.
Let's test the theory all the same...
And the futures market cares - NOT AT ALL - of course
That's cause equities are anticipating inflation aka huge money printing in response to the news. But it's what they're not anticipating that will kill them. Biflation
Biflation?
Yup. Everything you want (consumer crap, gimmicks and toys) deflates increasingly toward zero, while everything you need (a full stomach, somewhere warm to sleep, etc) heads in the other direction at the same or greater velocity.
In fact, there are signs it's already happening. I've read quite a few comments recently on various forums I frequent to the extent of, "Went into my local KleptoMart today and there were empty shelves all over. No bacon, milk, cheese, etc. What stuff they did have was all way expensive, except for locally grown fruit and vegetables, which were merely a little on the steep side. But they were selling new model 'phones at 50% off!"
Went into ASDA (Walmart group. Yeah, I know! It was on my way home.) earlier and my eyes were watering at the prices for fresh meat, bread, etc. Only pork seems to be relatively cheap at the moment (I figure there's a surplus, though the UK media hasn't reported that??). Beef, chicken, lamb and so on are stoopid expensive.
Oddly, though, pre-baked goods like bread, cakes, etc are expensive but home-baking supplies have actually gotten a tad cheaper since I bought some last. White bread flour down about £0.09 a kilo since before Xmas. I bought another 5Kg to add to the 'SHTF supplies'.
Alright, order in the court. Bailiff take the Euro defendant and castrate him, then take his co-conspirator at the Fed and do the same. Put the castratum right here in front of my gavel. What? You say there is nothing there to castrate? They are balloons? Balloons? Isn't that a French word?
Not to worry. Our great leaders got it all figured out:
In response to the declining global economy they will print money and rescue and the cronies.
"Morgan Stanley may want to revise their 37% Muddle Through probability outcome, to something more like 36.745% on this news."
Can you do a quick number crunch for us???? .... Well, that's better than we normally do.
STICK TO THE PLAN!!!!
Leeroy jenkins video was staged. I mean it's ok to reference it but I hope you know it's staged.
http://www.cracked.com/article_15849_7-viral-videos-you-didnt-know-were-...
Fuck...seriously? You just ruined my month.
TRIVIA ANSWER
Jack Valenti is buried in Arlington National Cemetery. Mister Valenti was a lieutenant in the US Army in WWII. After that he went to college and Harvard Business School. He founded an advertising agency that specialized in getting politicians elected. He then got a job working for Vice-President Johnson as a media advisor. He was in charge of the press corps in Dallas on November 23, 1963. He is seen in this famous photo (man farthest on the left, identified as number 2)
http://en.wikipedia.org/wiki/File:LBJ_oath_with_captions.jpg
After LBJ took office, Jack Valenti moved in to the White House for the first two months of the new Presidency. In 1966 he became head of the Motion Picture Association Of America (MPAA) until 2004. In 1998 he got the Digital Copyright Milenium Act passed. Now the MPAA is headed by former Senator Chris Dodd.
He looks like a mix between a french bulldog and a pug.
I cant' see photo! Wiki is on strike today!
World Bank is almost as up to date as Bernank. This EU recession began long ago and is in full swing now...just as The Bernank (and The genius Maestro prior to him)....they missed the subprime crash and subsequent collpase by more then a year. Is Big Ben still seein his "green shoots?"
Looking out the window has a better success rate for economic conditions imho.
As you state,"anyone with three neurons...."
Nah, they just deny as long as they can... before they lose credibility. I'm sure some day, future fed governors (maybe even the bernanke?) will proudly declare that gold is money... some day, when it's no longer possible to deny.
Prepare for the next melt-up is more likely.
Why melt-up?
How the hell do I know?
That's how the game is played!
Breaking, White House on 'smoking objects' lockdown. LSMFT, bitchez.
http://www.politico.com/news/stories/0112/71577.html
Clinton's stogies are still there?
After he dipped them in ML, he knew they would get better with age.
They don't need an excuse to throw a party at the white house.
happy Birthday Michelle Obama !
BO: "What do you want for your birthday, honey?"
MOO: "Something healthy, like peas."
BO: "Whirled peas?"
MOO: "No, regular peas, off of green shoots."
BO: "What about everyone else? They're all hungry."
MOO: "Let them eat cake."
lol
Never in my life have I seen so many people afraid of a recession. I mean wtf. You would think the end of the world happens when we go into a recession. Recessions my friends are manageable. Someone clue that dumbass Bernanke on this subject.
Rec is fun, you get to tighten your belt.
Too bad this is DEePeR.
All bullish for the $ of course. They can print, they can park but they can't force borrowing. The world is starting to understand the forces of deflation. Lucky for us in the US and A, while the world was returning from work, we'd already had our appetizer. Let the main course begin.
As I reported here 2 months ago, the Canadian Central Bank website declared a euro recession was in progress. It is obvious everyone involved knew it, but decided to declare it now.
I guess the Bank of Canada realized no one reads their declarations, so it was safe. That means it is a good source of economic information.
Sometimes I think they just kinda' throw darts at calendars to declare these things.
For example, food stamp participation is at an all time high, and 50% of all US households are receiving some type of government aide...but our recession ended in 2009.
It's just psychobabble designed to mold the behavior of society in my opinion. Either that, or they are just bat shit crazy.
"It's just psychobabble designed to mold the behavior of society in my opinion. Either that, or they are just bat shit crazy."
Both.
For example, food stamp participation is at an all time high, and 100% of all US households are receiving some type of government aide...but our recession ended in 2009.
There fixed it for ya. Gotta remember deductions for mortgage interest payments, gov't backed college tuition loans, military benefits, corporate bailouts, oil subsidies, and reduced tax rates on paper wealth generation. Everyone is sucking this bitch dry, wish I woulda figured out the game a while ago.
"
"Prepare For The Worst"in banksta rap that translates into, start hiring to fill out the thrid shift at the print building...
Expect this to be worth at least +300 DOW points.....silver and gold will CME'd (rhymes with screwed) as margin rates will decimated, yet again...providing the cover story that , there is no inflation.....
occult sources are promoting US$, Gold, Silver, and S&P. Sounds contradictory, but remains to be seen.
Its all batshit crazy anyway.
USD, Gold and Silver can simultaneously rise especially in these "uncertain" conditions but equities, now that's a stretch.
Some of the world elites waking up a bit from the hangover?
Party is just getting started.
About time for The World Bank to shill for hyper-QE. Thanks World Bank!
All the IMF is doing is setting the stage. Do you really 'think' all this crap is independent? Really? Not staged, planned, and implemented? So seriously then all this crap just 'happens' (pick your window) but I'll say begin with 1987, study the reality and draw your own conclusions.
My conclusion is not a happy one. Humanity has been raped on a scale never before accomplished. The deception has achieved parabolic momentum and the crash is going to be decimating.
Welcome to the N.W,O.
Below is a link to a historical speach about the changing of monetary policy in the US from an independant state to one of international control. There are things that fall into the category of "just happens", but things like what you listed do not qualify.
Bryan’s “Cross of Gold” Speech: July 9, 1896Interesting Ron Paul coverage from the South Carolina newspapers...
http://www.thestate.com/2012/01/17/2117756/pauls-candidacy-takes-on-feel.html
Tuesday, Jan. 17, 2012
Paul's candidacy takes on feel of a movement in South Carolina
This week, Paul's popularity began making inroads into established GOP circles, or at least the party's most libertarian wing. Four Republican state senators have endorsed Paul: Kevin Bryant of Anderson, Lee Bright of Spartanburg, Tom Davis of Beaufort and Danny Verdin of Laurens.
2008 was a non event... Loaded up on stocks and junk bonds jan-apr. sold it all in 2010 converting to tips...
This news is most certainly going to send WFM, SBUX, CMG, LULU, etc. to fresh, world record highs tomorrow.
They have already had monstrous runs, some of the biggest ever recorded in recent history.
I mean really, anybody believe these charts?
http://www.wallstreetbear.com/board/view.php?topic=93254&post=338006
Remember...Patience is a virtue...All comes tumbling down.
In the mean time, which, to "short" first?
Licking my chops
Wow, Europe is in recession?? I did not know that. Thank you world bank! If it wasnt for you I would be much stupider.
And The Wurlitzer Plays on .....
The World Bank is another International Ponzi Shell Company who feeds off of poverty to generate income by offering collective aid missions to raise monies.
http://www.worldbank.org/
Meanwhile, you have been peppered with present TV commercials, one being saving animals. Back in the day, it was about feeding people. What a racket..
UNICEF -2009
This poor girl has never been taught how to work and provide for her nanny state parents. Cry's over her empty plate of food and still has a taxpayer subsidized roof over her head. So sad in the beginning, her TV is snowy.
I think they need better software.
http://sedm.org/ItemInfo/Programs/MFDecoder/MFDecoder.htm
Morgan Stanley may want to revise their 37% Muddle Through probability outcome, to something more like 36.745% on this news.
What happened in 2008 again?
I don't know, exactly, but I heard the global economy almost went totally down the shitter, and then Bernie Madoff got arrested for $50 Billion.
BDI sub 1000.
http://www.bloomberg.com/apps/quote?ticker=BDIY:IND
And I'm sure the market is going to be up big tomorrow on such great news!
ha,ha, ha! "Prepare for the worst; you are too dumb and stupid for EVEN the mighty IMF to fix." IS Christine LAgarde throwing in the towel? I assume WB and IMF see eye to eye on this announcement.
Merkozy now ragged and naked.
Well Super Mario, its all up to you now! Are you ready to print to 10T LTRO???
Aparently the WB and IMF don't see eye to eye on this; although they belong to same mind set group.
See this : on IMF front!
REPORT: IMF PROPOSES TO BOOST LENDING FACILITY BY $1 TRILLION Gus Lubin | Jan. 18, 2012, 5:18 AM | http://static5.businessinsider.com/assets/images/icons/icons.png); background-attachment: initial; background-origin: initial; background-clip: initial; background-color: initial; color: #999999; background-position: 0px 0px; background-repeat: no-repeat no-repeat;" title="views">0 |Read more: http://www.businessinsider.com/report-imf-proposes-to-boost-lending-facility-by-1-trillion-2012-1#ixzz1jnu8LgAe
Sounds like Mario Draghi is not the only one!
The markets should already know this, but continues to shrug it off. The markets are on borrowed time as many indexes and currencies are at very important inflection points, which could set the tone for the rest of the year. Here is a look at the SPX, TNX, HG, CL, and AUDUSD. These are some very important charts. bit.ly/AlRxjr
Buy more guns and butter!
Buy more guns and butter!
Buy more guns and butter!