The European Central Bank will decide upon monetary policy today just as Eurozone GDP fell 0.1% in the third quarter. The falling GDP confirms that Europe is in a "Double-Dip" recession and raises fears that the European economy could drag in 2013.
The Guardian reports:
The head of the European Central Bank has warned that time is running out to resolve the crisis in the eurozone as the latest figures showed the 17 nations of the single currency have slid into a double-dip recession. With financial markets convinced that even worse data will emerge over the winter, Mario Draghi urged policy makers to take full advantage of the breathing space won by the ECB when it announced in the summer it would buy unlimited amounts of government bonds from troubled euro zone countries.A double-dip recession is the description of an economic growth curve that falls into recession (negative or slow growth) and then, after a short period of stronger growth, falls a second time into recession. The European double-dip points to "far worse to come" per Jennifer McKeown of Capital Economics, but that may prompt the European Central Bank (ECB) to cut rates from .75% to .5% in an attempt to stimulate the economy.
Our "fiscal cliff" as devised by Democrats in the U.S. Congress is now President Obama's political goal. He is currently pushing America into another recession by forcing higher taxes on middle class and other Americans. His strategy is to then blame his opponents and eventually claim tax cuts "to save the middle class." This political posturing will cost about 1.5 million American jobs and untold poverty among foreigners who rely upon our economic strength.
China is also facing slower growth in 2013, leaving the world's economy facing weak economies in Asia, America and Europe. Next year's world economy will be a tough one. Maybe those Mayans were talking about the economy.