Greatest Threat to the World Economy

JcollinsEconomics, Premium POM

There are two threats which could merge to create one great threat.

First, diverging mandates of central bank policies around the world are developing as one of the greatest threats to the world economy. The systemic nature of this threat is in direct correlation with the imbalances which have grown within the international dollar based framework and the national responses to those imbalances.

As an example, while the Federal Reserve in America has started down the road of monetary policy normalization, other central banks, such as in Europe and Japan, are still struggling with recession economics and remain on the quantitative easing path. China is still struggling with deflating its massive credit bubble while at the same time broadening the internationalization of the renminbi.

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