PRLog (Press Release) -
Apr 27, 2010 -
“SourceOne International”
analysts say that leaders of the world’s most developed economies are fast approaching the point where they must either decide to withdraw the huge stimulus measures that helped their countries recover from the global slump or run the risk of suffering a similar fate to that of Greece which has recently called in the IMF to provide emergency funding to avoid default on its debts.
http://www.g20.org/The firm remains skeptical of suggestions that the recovery in the countries worst affected by the global financial crisis has progressed better than expected. They argue that withdrawal of the stimulus will send some countries back into recession since much of the growth in nations like the US has been financed by government money and the removal of this funding is unlikely to be supplanted by the private sector or the consumer.
“SourceOneInternational”
says that the US has the advantage of holding the world’s reserve currency but countries like the UK and several EU members states would need to begin withdrawal soon or face difficulties raising money on the bond markets. http://www.imf.org/
external/index.htm
“SourceOne International”
added that the situation poses the greatest threat to the global economic recovery and, if mistimed, could eventually result in governments taking drastic and reckless measures which could potentially result in serious inflationary pressures.
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