Roubini: Global Economy faces uncertain Future--including possible double dip--in 2013

Roubini: The Global Economy faces an uncertain Future in 2013

The American Economist Nouriel Roubini (Dr. Doom) predicted an uncertain scenario for the world economy in 2013, a year in which Europe could deepen its crisis, while China slow their growth and United States would fall into a situation of stagnation. The Economist was in the Argentina and during his talk highlighted as a favorable factor in the situation of globalization that promotes sharing and investments.

Nobel Prize in economics 2009 and famous for having predicted the crisis of 2007, Roubini spoke yesterday at the World Business Forum which took place in Buenos Aires last week. The American economist born in Turkey also drew attention to the risk posed the possibility of a confrontation between Israel and Iran for the world economy and that match the rest of its forecasts, it set a 'perfect storm' next year.

Roubini: "My prediction for the perfect storm is not this year but 2013 , because everybody is kicking the can down the road , we going to have a problem in the US after the election if we do not resolve our fiscal problem , China is overheating and at fix investment of 60 percent of GDP eventually it going to get a hard landing,  The Europeans are pushing their problems but Greece Ireland Portugal need to restructure their debt they are insolvent that's going to be on 2013 , Japan is going to shorten its stimulus it is going to slack again in a year from now , so I se every country in the world trying to push their problems to the future , we started with private debt public debt super national debt we are kicking the can down the road and eventually all this is going to come to a an end in 2013." - in CNBC

In the United States, the latest economic data – including a weak labor market – confirm that growth is anemic, with output in the second half of 2012 unlikely to be significantly stronger than the 1.6% annual gain recorded in January-June. And, given America’s political polarization and policy gridlock, we can expect more fights on the budget and the debt ceiling, another rating downgrade, and no agreement on a path toward medium-term fiscal consolidation and sustainability – regardless of whether President Barack Obama is reelected in November. On the contrary, we should expect agreement only on the path of least political resistance: avoidance of tough fiscal choices until the bond vigilantes eventually wake up, spike long rates, and force fiscal adjustment on the political system. - in project-syndicate

"It became clear in 2012 that this game of `kicking the can down the road` is a zero-sum game," he wrote in an article published on the Financial Times website "By 2013 at the latest, but possibly already in 2012, a perfect storm of a double-dip recession in the U.S., a disorderly scenario in the euro zone and a hard landing in China could materialize," he added - via CNBC

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I've been reading and listening to Dr. Doom (Roubini), Paul C. Roberts, and Gerald Celente, among others, since 2005, and I credit them totally that my wife and I were well aware ahead of time that the economic crisis which hit us in late 2007 was coming. Not like we had an overwhelming investment portfolio to secure, but our lives didn't get turned upside down by it and we didn't lose any money because of it, and we were able to warn friends and family it was coming. Whether or not they took us seriously or thought we were crazy is up for debate, but we still listen to them, and if Roubini says another one is coming, I believe him and you should too.--jef

Global Fight for Natural Resources 'Has Only Just Begun,' say Experts

"Free Markets" cannot be relied to efficiently allocate resources or provide fundamental human needs: Amartya Sen

Better economic incentives, rather than ethical considerations and appeals to human morality, are needed to encourage investment in a more sustainable economy, according to Nobel Prize-winning economist Amartya Sen.

Nobel prize-winning economist Amartya Sen told the conference that governments would need to step in, to ensure resources were best distributed. 

Speaking at the Re|source 2012 Conference in Oxford, Sen said that so-called 'free markets' could not be counted on to meet all fundamental human needs nor could the private sector be trusted to efficiently allocate the world's natural resources.

“The way to make the financial sector respond is not through moral exhortation, but by increasing incentives,” said Sen. "The market will respond to price increases,” but world governments are required to intervene and address “inequality and iniquity” that the market inherently generates.

Sir David King, former chief scientific adviser to the UK government, who also spok at the conference, told the Guardian: "We are nowhere near realising the full impact of [diminishing resources]. We have seen the first indications – rising food prices, pressure on water supplies, a land grab by some countries for mining rights and fertile agricultural land, and rising prices for energy and for key resources [such as] metals. But we need to do far more to deal with these problems before they become even more acute, and we are not doing enough yet."

Regarding energy investments and creating better markets for renewables, Sen offered that incentives should be introduced for solar technologies, while subsidies for nuclear power should be removed.

Sen said he sees the glass as both half empty and half full, but that if we "think intelligently" the world could make the glass "much more full."