US “Not Sustainable” as Global Growth Leader

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Canadian Finance Minister, Joe Oliver (Reuters)
Canadian Finance Minister, Joe Oliver (Reuters)

Canadian Finance Minister, Joe Oliver, was reported saying that it is not possible for us to always depend on the US to boost the world’s economy. He added that it’s time for other nations to put their best foot forward. World economic growth has been predicted to be weak this year, with the US largely leading the estimated advances, [1] but he believes that the US is not sustainable as a growth leader.

Reuters quoted him as saying, “Though America is carrying the world economy at the moment, that is simply not sustainable. We need key pillars of global growth to reassert themselves.”

The new hurdle for G20 is to bring back economies which are growing at dissimilar speeds. While the US seems to be doing well, Oliver says that, “The euro area is confronting flat growth and deflation. Beyond Europe, the growth rates of key emerging economies – China and India – are losing steam.” Adding that, “geopolitical crises – in Ukraine, Iraq, and Syria – pose serious risks, complicating the recovery.”

Last month, the International Monetary Fund (IMF) cut its forecast of world growth in 2015 to 3.5% from 3.8%. The prospect for 2016 was also slashed from 4% to 3.7%.

China’s economic growth hit the lowest in 24 years, last year. Their economy has dropped to a new low ever since 1990 because it failed to reach the official annual growth target of 7.5%. This is just one example of the global slowdown. Add to this low global oil prices and reduced demand for oil in the world, and the situation seems bleak.

In the meantime, global debt has initiated concerns about financial stability as it has escalated to $199 trillion, an increase of $57 trillion.

SOURCE:

[1] http://rt.com/business/230451-us-cannot-lead-growth/http://www.russiainblogs.com/2015/02/us-not-sustainable-as-global-growth.html


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7 COMMENTS

  1. I mean, if European nations didn’t have such ridiculous income taxes, then maybe their talent wouldn’t be flooding out of their borders.

    One thing I’ve learned recently is the importance of the energy sector, in other words IOC’s – international oil corporations. Sadly, the only European nations with stakes in these companies are the producing Scandinavian nations, France, Germany and Britain (off the top of my head). The rest are subjects to the whims of OPEC. If Europe wants to succeed, they have to figure out how to ween themselves off oil. Otherwise, too bad so sad, your economies are going to keep on dwindling comparatively as you rack up more and more debt to afford powering it.

    • have you seen the taxes for the middle class in the US? I mean, that’s the core reason, why the economy is crumbling in the US. While the wealthy pay way less tax (Watch the film: ‘Inequality for all’) + I prefer having higher taxes and have a honourable life and not getting bankrupt the minute I break my arm (Healthcare) or study and not have to pay off my loans until my fourties. Also the school systems are way more efficient, especially in the Germanic areas, where you have the best education in state schools and don’t have to look for a private school, so only the wealthy are educated…
      The US is a Plutocracy. Everything, even the human rights, are a buisness.
      Of course, we as Europeans are trying to get rod of oil dependence. US should try as well, because fracking will definately fuck up your enviroment. But your oil lobby is paying too well to your congressmen, your TV and everywhere… watch the moment, the US has to pay its dept back (30% are held by China)
      Some areas of the US are in wealth comparable to Romania… In 20 years, the US will be bankrupt and noone is gonna help them, because the investors running your country have already left the sinking ship

  2. I think every country needs to take stock & enrich secure it’s own local workforce/production & those in the wealthy countries (aka the West) should demand trade fair from 3rd World Counties so workers aren’t exploited whilst the governments or owners become more powerful & corrupt. It is better to have a rich tapestry than a few rungs of coarse thread as when one market starts to wane or fail at least there’s plenty of material (other sources of industries/skills/jobs) that people or the economy can find refuge or move onto. Renewable resources & greener energies are important as too much reliance fossil fuels is not environmental & can leave county economies, securities open to exploitation.

  3. The Canadian Finance minister is wrong anyway…China and India aren’t losing steam and stagnating with their economy, quite the opposite actually. It’s predicted China may soon over take US as the global economic leader if things persist. Disappointed in Anonymous posting something so conjectured…

  4. The current capitalistic system is broken, period. Unfortunately, those who are in power are those that broke the system and they have bought most countries political systems.

    Not quite as elegant as The Global Minotaur, but Vanis V. book is worth a read.

  5. “China’s economic growth hit the lowest in 24 years, last year. Their economy has dropped to a new low ever since 1990 because it failed to reach the official annual growth target of 7.5%. This is just one example of the global slowdown. Add to this low global oil prices and reduced demand for oil in the world, and the situation seems bleak.”
    This paragraph sounds like Canadian propaganda. China buys oil more than they extract it, they would not think it is bleak that oil prices are falling.

  6. “We need key pillars of global growth to reassert themselves.”

    Lets just tag this to the end of that statement.

    “So we can then call them a threat to national security and then bring them ‘freedom’ to liberate their resources”

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