Europe, U.S. all out of monetary tricks

[marmar]

via MarketWatch:



BEIJING ( Caixin Online ) — Industrial production is stalling in India, and its credit rating may be downgraded to junk. Power consumption in China has slowed to about half of last year’s level, while consumer price inflation remains stubbornly high.

It’s obvious the world’s largest emerging economies are no longer in a position to carry the global economy through tough times, as they did during the “recovery” years of 2009-’11. And that spells trouble for the United States and Europe.

The euro-zone economy may have contracted again in the first quarter; its data fits the stagflation model quite well. Inflation grew 2.6% in the first quarter, and gross domestic product is expected to grow no more than 0.8 % this year, rising from a low base due to a contraction in the second half 2011.

Stagflation also seems to be settling over the U.S. economy. A much-hyped recovery delivered a disappointing first quarter, with preliminary estimated GDP growth up 2.2% from the previous three months and the consumer price index climbing 0.9%, or 3.6% on an annual basis. ..................(more)

The complete piece is at: http://www.marketwatch.com/story/emerging-market-woes-to-shadow-us-europe-2012-05-07?dist=beforebell

[Javaman]

1. And the house repukes cheer over stagflation.

to them party comes before country.