Tuesday, 9 August 2011
Financial Problem of world
World economies are facing serious financial problem. A few years ago we faced recession and world did not recover from last recession. Credit rating of America decreased due to bad financial policies of White House. Stock markets of world down sharply. Situation of GREECE, SPAIN is not different. This can damage coordination of economy and can create new recession. This monetary crisis is also responsible at some level for inflation. Inflation rate is very high all around the world. Consumer prices in China in this July rose unexpected 6.5% . Most investors are losing faith in stock markets, realty and in currency reserves. This is the reason why gold is going up and up. Although if it is just a monetary problem , it can be solved easily by adopting new economic policies. But it may be partly resource and competition problem and difficult to find solution. In spite of degrading of US, its unemployment rate decreased from 9.2 to 9.1 in July.
Let there is hope, if crude oil remain below $100 in next year.