Economic Report The current State of the economy



The IMF predicted that China is going to "pump" more money in the global economy then the US next year. Economic forecasts prognoticate that China economic growth is going to reach 10%. The US economic growth is predicted to stagger with only 1.9% growth. China has already replaced the UK as the 4th biggest economy.

The Credit crunch in the US is not just dragging the American economy but also effecting banks in other countries that have lended to American banks and hurting other markets. Cuts in interests rates maybe be helpful but would be hard to stem off an increase in inflation , with oil prices reaching 90$ a barrel. Food prices have also been on a rise do to an increase in demand, poor harvests, global warming and the use of biofuels. -Telegraph The use of corn ethanol as a "savior" to our energy needs we be lamented in a future post.



The issue with China is not a concern in this piece. The economic slow down caused by this credit cruch is a real concern. The aforementioned inflation is a problem and a recession appears to be looming. Stay Tuned