Downgrading of Euro zone

Financial Problems of European countries are not ending. Rating of European countries is decreasing continuously. Huge government deficit are creating problems. It is difficult for economy to recover soon. It will take much time.
Agencies are decreasing rating of European countries. Greece, Ireland, Portugal, Spain, Italy etc were considered effected from this debt problem. But now rating of other countries like France, Austria is also decreasing. This can increase borrowing cost of these countries. Standard & Poor's has downgraded the EU bailout fund to AA+ from AAA. Although matter of rating is not very important but more important is how much time does European economy takes to recover. Inflation rate is decreasing continuously
in Europe.

Now Italian are in hands of Economists

After Greece , Italy is second biggest victim of debt crisis. There is huge political drama in the country . Silvio Berlusconi has to resign from post of Prime Minister due to financial crisis . In new cabinet , most members have good knowledge of economics. Mario Monty formed a new government that would remain in office until the next scheduled elections in 2013. He was European Commissioner and is a good economist. Italy has a very high level of debt and that is making problems for Italian economy.
Italian debt stands at about 120% of its GDP. Most people believe that picture of Italy is much brighter than Spain or Ireland. Unlike Spain or Ireland ,Italian people took very less debt. Most part of debt is on Government. Government did not spent to much in last 5-10 years but Italy saw very low GDP growth in last 10 years less than .80% .
Now first step Government has to take to reduce deficits and repay loans it took.European Union is ready to support Italy with eurozone bailout fund.

Agreement on bailout fund

European countries agreed on finance package for saving Greece Economy. European Union agree on increasing bailout fund from 400 b to 1 trillion Euro. There was uncertainty about the package. Banks also have to sacrifice and loose huge money. This is very bad for banking sector that is already facing serious challenge due to downturn . But problem is big and Greece is not only victim of debt crises. Many other countries also have serious problems. After Greece , Italy may be next victim. Italy has big debt even bigger than Greece but main difference is that most of Italy ‘s debt is internal . There is also news that China may invest money in some scheme related to bail out fund.

WEAKNESS OF GLOBAL ECONOMY

World economy is sick and in bad condition. Recession is knocking at the door of Europe. Now condition of USA is little better than Europe. Greece economy is in critical condition. European leaders are unable to find solution of problem.
People in Greece are on road and protesting policies of state. In this week most European index almost lost 4%. IMF is trying to find solution of problem but it is very difficult. These conditions have arisen questions on success of common currency. There is one relief , crude oil is going down. This may help economy.
Problem can not be solved in 1or 2 years , it needs much more time and strict policies for many years.

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.

debt problem continues in Greece

Financial problems of Greece is not ending. 110Billion euro package is approved by European union to help Greece but this does not seem enough. Problem is deeper. Actually Greece itself created problem and it has to solve it by its own efforts. European Union is helping at mass level.
All parties should support reforms programs. It is not time of politics.
Greece has more than 300 billion debt.
Problem will be solved but it will take time .

P for Population, P for Problem , P for Poverty

P for Population, P for Problem , P for Poverty

Problem is second name of population, but third p means politicians do not think so. Population makes them popular. Most economist and politicians are not aware about population problem. Today is Population Day. Increasing population is a big problem. Poor countries like India, Bangladesh , China etc are already overpopulated and facing shortage problems. Actually in long run, result of population growth are very dangerous. But we do not take any problem seriously until we fully face it.
World resources are limited and we can make adjustment with them at certain level. Law of variable proportion already apply on many countries of world. If Japan or England do not feel any problem from overpopulation , this does not mean America will feel same economic condition with population density of 300 or above. These countries are small and their population is very less compared with world population. We are cutting trees and polluting rivers. We can not adjust such a huge population. Think what would be picture of India and China if their population density is same as Australia or Canada. World leaders should seriously think about this problem.
I think biggest achievement of communist China is one child policy.
World community should not ignore it.