The World Bank is now issuing a warning that the global economy is heading for a decade of gloom, in line with warnings being issued by the Eurasia Group who is stating that the world is facing a ‘big unexpected crisis’ in 2018.
“There is a sense in which financial markets appear to be complacent. That makes room for disruption when there are surprises – a repricing of risk,” said Franziska Ohnsorge, a World Bank economist.
The warning issued by Franziska Ohnsorge echoes prior institutions including Legal and General Asset Management, which both fear that the US economy will surge ahead before rate hikes break the bubble and cause a recession.
However, the World Bank is not the only group issuing such ‘dire’ warnings in fact, according to the Eurasia Group; “In the 20 years since we started Eurasia Group, the global environment has had its ups and downs,” Eurasia President Ian Bremmer and Chairman Cliff Kupchan wrote in the outlook. “But if we had to pick one year for a big unexpected crisis — the geopolitical equivalent of the 2008 financial meltdown — it feels like 2018. Sorry.”
Furthermore, the Eurasia Group also stated that “We aren’t on the brink of World War III, but absent a global security underwriter, and with a proliferation of subnational and non-state actors capable of destabilizing action, the world is a more dangerous place.”
In accordance with the World Bank and the Euro Group, similarly, The United Nations Secretary-General issued a ‘Red Alert’ for 2018. Mr. Guterres stated that the crises of the world are deepening. Further, the leader of the UN compared climate change to nuclear weapons and mentioned that nationalism and xenophobia are on the rise.
Previously the World Bank has issued similar warnings, in fact, in 2012 the globalist enterprise issued a ‘dire warning’ to developing nations that a growth slowdown would take place that year. Also, the World Bank warned in that same year, “the continued threat of a global financial shock “similar in magnitude to the Lehman crisis,” because of the possibility that a major European economy could be shut out of the global debt markets. In that case, the bank estimated the damage to the world’s economic growth would rival the recession of 2008 and 2009.”
Now, in 2018 the World Bank is stating that;
“Population growth has driven a substantial portion of GDP growth in recent decades, but this is now slowing. As a result, economic growth, and rising living standards will have to be driven by productivity growth in future if prosperity is to continue to emerge and poverty to be reduced.”
“It would be the slowest decade of potential growth since [the World Bank’s dataset began in] the mid-nineties,” Ohnsorge said, warning that this could have serious repercussions for investors and for borrowers.
“Currently nobody takes that into account because of the cyclical recovery. But cyclical recoveries get their own momentum and growth seems very strong.
“It is when growth fizzles out that there is a reassessment of growth prospects, which usually comes [with] a reassessment of debt sustainability, of any debts – sovereign, public, private.
“That is the risk, that markets suddenly reassess long-term growth prospects, and so debt sustainability of any borrower is weaker.”
However, according to the Eurasia Group the biggest concern this year is China. The Communist Nation’s return to a dictatorial style of governing, according to the Eurasia group, ‘is helping Xi Jinping to fill a global power vacuum created by US President Donald Trump’s move away from Washington-led multilateralism.’
“For most of the West, China is not an appealing substitute,” Eurasia said. “But for most everybody else, it is a plausible alternative. And with Xi ready and willing to offer that alternative and extend China’s influence, that’s the world’s biggest risk this year.”
According to the World Bank, the Eurasia Group, and The United Nations Secretary-General, 2018 is fixing to be an interesting and ‘dire’ year. However, the globalist mouthpieces have issued such warnings before, as displayed above. Time will tell what 2018 turns out to be.
Tim Wallace. “ Fizzling out: World Bank says global economy is set for a decade of gloom .” Sunday Morning Herald. . (2018): . .
Enda Curran. “ The world is facing a 'big, unexpected crisis' in 2018, says Eurasia Group .” Sunday Morning Herald. . (2018): . .
The Bulletin. “World Bank issues growth warning.” The Bulletin. . (2012): . .