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World needs $100 trillion more credit, says World Economic Forum

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posted on Mar, 7 2011 @ 03:42 PM
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The world's expected economic growth will have to be supported by an extra $100 trillion (£63 trillion) in credit over the next decade, according to the World Economic Forum.

This doubling of existing credit levels could be achieved without increasing the risk of a major crisis, said the report from the WEF ahead of its high-profile annual meeting in Davos.

But researchers warned that leaders must be wary of new credit "hotspots", where too much lending takes place, as the world emerges from a financial catastrophe blamed in large part "to the failure of the financial system to detect and constrain" these areas of unsustainable debt.

"Pockets of credit grew rapidly to excess – and brought the entire financial system to the brink of collapse," said the report, written in conjunction with consulting firm McKinsey. "Yet, credit is the lifeblood of the economy, and much more of it will be needed to sustain the recovery and enable the developing world to achieve its growth potential."

The global credit stock has already doubled in recent years, from $57 trillion to $109 trillion between 2000 and 2009, according to the report.

The WEF said the continued demand for credit could be met "responsibly, sustainably – and with fewer crises". However, it cautioned that to achieve this goal, financial institutions, regulators, and policy makers need more robust indicators of unsustainable lending, risk, and credit shortages.


www.telegraph.co.uk...

How can $100 trillion dollars be pumped into the global economy 'without increasing the risk of a major crisis'? Surely this would cause major upward inflationary pressures?




posted on Mar, 7 2011 @ 03:45 PM
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Deceiving Economics Breed Terrorists



posted on Mar, 7 2011 @ 03:56 PM
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Theres a storm coming !! This stupidity can not continue !! One after one countries will fall !! The "empire" is coming to an end and all should prepare in their own way.... No one can halt the NWO plan NO ONE !!



posted on Mar, 7 2011 @ 04:05 PM
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SO the world is in debt. guess we'll either have to

1) start borrowing from the ET's,

2)realize that our current economic system is retarded

3) or tell the "TPTB" who stole all our money to give it back, because to get any richer is like getting more pregnant



posted on Mar, 7 2011 @ 04:28 PM
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Originally posted by BadBoYeed
SO the world is in debt. guess we'll either have to

1) start borrowing from the ET's,

2)realize that our current economic system is retarded

3) or tell the "TPTB" who stole all our money to give it back, because to get any richer is like getting more pregnant


Well lets just hope aliens deal in greenbacks.



posted on Mar, 7 2011 @ 10:15 PM
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But researchers warned that leaders must be wary of new credit "hotspots", where too much lending takes place, as the world emerges from a financial catastrophe blamed in large part "to the failure of the financial system to detect and constrain" these areas of unsustainable debt.

The system can't even detect areas where there is too much debt.

"Yet, credit is the lifeblood of the economy, and much more of it will be needed to sustain the recovery and enable the developing world to achieve its growth potential."

The lending will go primarily to the developing world? Africa and the Middle East? Maybe North Korea?

The WEF said the continued demand for credit could be met "responsibly, sustainably – and with fewer crises". However, it cautioned that to achieve this goal, financial institutions, regulators, and policy makers need more robust indicators of unsustainable lending, risk, and credit shortages.


In order to make this work we will need detailed, accurate, financial information from each country. (I don't see that happening.) We'll also need a new system of analyzing risk. (See the first quote, above) And finally, the underdeveloped countries are big credit risks, but that's who the lending is going to go to. How will they pay interest, or won't they pay interest?

This can only work if there is a fairly quick return on investment. The receiving countries should have a non-corrupt system in place, the project shouldmake a significant difference, and it should be very efficient.

I don't know.....Somebody teach me how it will work, I don't want to be a Gloom and Doomer. Here's a flag.



posted on Mar, 7 2011 @ 11:12 PM
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When you start getting into numbers like this you are entering a realm that most people can't even begin to conceive of. How many people would be unable to write the number "1 trillion" anyway? More than you might think. If you are used to thinking in macroeconomic terms these sorts of numbers are a bit more meaningful but still without the "non-cognitive," almost intuitive understanding we have of much smaller numbers. That's why TPTB can get away with this stuff: Print up an imaginary billion and shuttle it off to Swizerland, and people shrug and go back to their breakfast cereal. So why not conjure up a trillion, or a hundred trillion? The poor dumb sheep can't even tell you for sure which amount is larger.
edit on 3/7/11 by silent thunder because: (no reason given)



posted on Mar, 7 2011 @ 11:15 PM
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Originally posted by BadBoYeed
SO the world is in debt. guess we'll either have to

1) start borrowing from the ET's,

2) realize that our current economic system is retarded

3) or tell the "TPTB" who stole all our money to give it back, because to get any richer is like getting more pregnant


star for you
I couldn't have said it better myself



posted on Mar, 7 2011 @ 11:17 PM
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Originally posted by silent thunder
When you start getting into numbers like this you are entering a realm that most people can't even begin to conceive of. How many people would be unable to write the number "1 trillion" anyway? More than you might think.



You're right;

My pen ran out of ink before I could write down all those zeros.




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