With private debt on public debt on top of supra-national debt, the buck will stop in 2013
Economically speaking, 2012 isn’t turning out to be a great year. We’ve seen stubbornly high unemployment in the U.S., the near collapse of the Greek and Spanish economies, a double-dip recession in the U.K., and, in Canada, underwhelming growth. But according to a number of recent forecasts, 2012 might very well glow in comparison to what’s ahead.
Nouriel Roubini, who’s risen to stardom in the world of economics by predicting much of what happened in 2008, expects pain across the board in 2013: “Every economy in the world is trying to push their problems to the future. (…) We start with private debt, public debt, supra-national debt–we’re kicking the can down the road and eventually this is going to come to a head in 2013.”
Here’s a quick roundup of the trouble to come:
The U.S.
“CBO estimates that the combination of policies under current law will reduce the federal budget deficit by $607 billion, or 4.0 per cent of gross domestic product (GDP), between fiscal years 2012 and 2013. The resulting weakening of the economy will lower taxable incomes and raise unemployment, generating a reduction in tax revenues and an increase in spending on such items as unemployment insurance. With that economic feedback incorporated, the deficit will drop by $560 billion between fiscal years 2012 and 2013, CBO projects.”
Europe
China
Canada