Financial markets were pressed by doubts perpetuated by weak economic statistics across the board. The positive benefits of negative outlooks are declines in oil price and bond yields if the demand for bonds and any coordinated financial intervention toward them outweighs the fear of credibility of issuing nations.
• Multiple downgrades of Global, and U.S. 2011 GDP
• CPI and PPI costs increase in July
• International 2-30yr bond yields drop
• Gold price reaches new high over $1,800 per ounce
• WSJ questions EFSF bailout fund size and Euro credit ratings
A key underlying issue includes a challenged global employment rate that cannot keep up with population increases per the International Labor Organization (ILO). Also, increased demand for natural resources linked to a growing global economy increases price pressure on those resources which falls back on the current challenge of developed nations to keep growing.
The prospect of uninterrupted sustainable growth seems questionable at least, as economic pressure points continue to be tested despite increased global economic growth.
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