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Showing posts from July 26, 2014

The Global Financial Crisis and Recession: 7 Years On

As the summer season reached its zenith in the northern hemisphere the global economic crisis that began in 2007 reached its seventh anniversary. Three announcements were made alongside this that show the crisis has not ended and the global economy has not recovered from the economic crisis. The three announcements were:
1. The European Central Bank (ECB) announced on 5 June 2014 that it was cutting its headline interest rate to 0.15%, and that it will impose negative interest rates of -0.1% on eurozone banks who place reserves in their accounts held by the ECB.
2. On June 16 2014 various US banks announced that America's total debt has reached $60 trillion! America's total debt includes government debt, business debt, mortgage debt and consumer debt. The US economy is worth only $16.7 trillion.
3. The US Commerce Department reported on 25 June 2014, that the US economy shrank 2.9 % in the first 3 months of 2014.
As the US has the world's largest economy, the g…