World Bank Gives Dismal Outlook For Global Economy, Developing Nations

This is depressing, but definitely worth noting.

Because wealthier countries of the world have deteriorating economies, such as the U.S., the poorest of the poor in developing countries will be harshly affected by this:

June 22 (Bloomberg) -- The World Bank said the global recession this year will be deeper than it predicted in March and warned that a flight of capital from developing nations will swell the ranks of the poor and the unemployed.

The world economy is forecast to contract 2.9 percent this year, compared with a prior estimate of a 1.7 percent decline, the Washington-based lender said in a report released today. Global growth will return next year with a 2 percent expansion, the bank said, cutting its forecast from a 2.3 percent prediction about three months ago.

Also:

‘Grave’ Prospects

With less capital coming in, growth in the developing world will be 1.2 percent this year, the World Bank said, scaling its outlook back from a 2.1 percent prediction in March.

“Low-income countries face increasingly grave economic prospects if the dramatic deterioration in their capital inflows from exports, remittances, and foreign direct investment is not reversed in 2010,” the report said.

As a result, “developing countries will most likely face a dismal external financing climate in 2009,” the report said, adding that net private flows will “barely” be positive.

The bank downgraded its forecast for the U.S. this year, calling for a 3 percent drop in the world’s biggest economy, after predicting a 2.4 percent contraction in March.

And this too:

Aid Outlook

“The amount of development assistance to low-income countries will not fully cover their external financing needs in 2009, while the outlook for donor countries to increase aid is significantly bleak, given the intense fiscal pressures they face because of the crisis,” the report said.

My opinion: When you start messing with capitalism in this country, or any other country, thinking you will help those less fortunate and hungry by taxing the rich, placing more government controls in place, and growing the government, in reality you DO NOT help the less fortunate and hungry but only make things worse for them...sure, other causes exist for the current global economic crisis, but is our current administration helping matters???
but of course, far more sinister plans may be lurking in the background of the global financial crisis...

World Bank Cuts Forecast For Global Economy, Developing Nations

I still keep in mind that the estimates provided by the world bank could be watered down to prevent panic and keep the power holders unchanged.

I wouldnt be at all surprised if this current estimate isnt even the tip of the iceberg compared to reality.

reply to post by phi1618


I know, me too...I wonder if things are far worse...

Well nearly all bank or govt economists estimates have been far too optimistic for year. If you notice, they always have to revise them on the bad side. This is more of the same. And most likely these new estimates are far too positive as well......

reply to post by Astarfaraway

My opinion: When you start messing with capitalism in this country, or any other country, thinking you will help those less fortunate and hungry by taxing the rich, placing more government controls in place, and growing the government, in reality you DO NOT help the less fortunate and hungry but only make things worse for them.

I think this is a good indication that we are existing in a fundamentally broken system. The wealthy and powerful have effectively created a system where they are beyond any sort of social accountability. They have made themselves "too big to fail". They have created a system where the only option is to keep taxing the poor. The poor are supposed to be grateful for the table scraps that "trickle down" to them. If the poor suggest taxing the wealthy, the wealthy only have to threaten to stop the trickle. Meanwhile, droves of the poor get laid off, lose their houses, can no longer afford to eat or drive... just so the wealthy can continue their status quo.

Look around, we are in an economy where banks are failing because of how greedy they got when they were screwing the little guy. Then they somehow manage to get the same little guy to pick up the tab for their failure. THEN they have the audacity to pay their top execs huge bonuses and continue to screw the little guy.

This is insanity and it can not be sustained. The economy as we knew it is over. How violent its final collapse will be is still an unknown but I would bet that 2017 will look quite a bit different than 2007 did. I think the wealthy still have time to extort what remaining wealth they can before it is over. I don't think it will be long though.

Originally posted by Karlhungis
reply to post by Astarfaraway

 

My opinion: When you start messing with capitalism in this country, or any other country, thinking you will help those less fortunate and hungry by taxing the rich, placing more government controls in place, and growing the government, in reality you DO NOT help the less fortunate and hungry but only make things worse for them.

I think this is a good indication that we are existing in a fundamentally broken system. The wealthy and powerful have effectively created a system where they are beyond any sort of social accountability. They have made themselves "too big to fail". They have created a system where the only option is to keep taxing the poor. The poor are supposed to be grateful for the table scraps that "trickle down" to them. If the poor suggest taxing the wealthy, the wealthy only have to threaten to stop the trickle. Meanwhile, droves of the poor get laid off, lose their houses, can no longer afford to eat or drive... just so the wealthy can continue their status quo.

Look around, we are in an economy where banks are failing because of how greedy they got when they were screwing the little guy. Then they somehow manage to get the same little guy to pick up the tab for their failure. THEN they have the audacity to pay their top execs huge bonuses and continue to screw the little guy.

This is insanity and it can not be sustained. The economy as we knew it is over. How violent its final collapse will be is still an unknown but I would bet that 2017 will look quite a bit different than 2007 did. I think the wealthy still have time to extort what remaining wealth they can before it is over. I don't think it will be long though.

Although I don't completely agree with what you are saying (I thought like you too before, until I took an economics class...this class explained to me the merits of capitalism verse the economy-destroyers of socialism and especially communism...any way you look at it, somebody's going to be in charge, and so which system would be best in this regard? communism/totalitarianism, socialism, or capitalism?), I will agree that 2017 will not look like 2007...pretty scary stuff...yikes...

reply to post by Astarfaraway


My problem isn't necessarily with capitalism. It is with what our system has turned into. We are in a system that has transformed into a subtle class war that seems to be bent on protecting the wealthy at the expense or exploitation of the poor. The regulations that are supposed to prevent this type of behavior or abuse are enforced by corrupt officials that turn a blind eye to it. The system has been completely corrupted and the only ones who could have fixed it were in the tank, pulling the strings to corrupt it further.

What is the best system? Tough to say. I ask myself this a lot. I honestly think that there isn't really a perfect system for controlling such a large population. I guess it depends on what you value and what you want out of a system. In the end though, I doubt it matters because I think that every system will end like this.