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The global economic crisis has reached the countries that are considered the center of the world economy – Global economic crisis: The global economic crisis has now reached the center.ATN News

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Global Economic Crisis: The London Stock Exchange
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Due to inflation, high interest rates and increasing pressure on the financial system, the deepening crisis around the world has now reached the countries considered to be the center of the world economy. After the turmoil in the UK bond market last week, economists warned that the shocks could spread beyond the UK to other developed countries.

Meanwhile, speculations of bankruptcy of Switzerland’s Bank Credit Suisse have worsened the environment. Western media have said that if this bank collapses, the world may face a 2007-08 recession due to its chain reaction. Then the failure of the American bank Lehman Brothers caused the entire world to suffer from economic depression.

Last week, the British government drastically reduced the tax rate. After that, the prices of British government bonds and the British currency, the pound, fell sharply. The Bank of England (UK’s central bank) then took over the bond market by deciding to buy government bonds. But market experts have said that it is only a salve. This move by the Bank of England will further increase the rate of inflation.

The British journal The Economist has said in an analysis that Britain and Europe have been the most affected by the economic crisis and the United States is largely immune from it. But due to uncontrolled inflation, he too will not be able to survive the effects of this crisis for long. On the other hand, the American newspaper Wall Street Journal has said in an analysis that Britain is still playing the role of a warning bird. This should warn developed countries.

The U.S. Federal Reserve’s policy of raising interest rates has strengthened the dollar but has rattled monetary and financial markets around the world, the Wall Street Journal said. These include developed countries. Due to inflation, Britain and European countries have adopted a policy of providing aid to their people, but due to this, there has been pressure on their exchequer. The debt burden on these countries is also increasing.

The Wall Street Journal has said – ‘The most worrying thing is that the UK is only the first country to suffer from high interest rates. Other countries may also suffer. How bad are the conditions? It is difficult to predict at this time because many risks are hidden. Such threats will emerge later in 2007.

Larry Summers, a former US Treasury secretary and now a professor at Harvard University, has said that the situation today looks like it did before the global recession began in 2007. He has said that when tremors occur, it is not necessarily always a severe earthquake. But such earthquakes never occur without aftershocks. Earthquake tremors are definitely being felt at this time. Other analysts have said that the crisis has so far deepened in countries considered to be on the fringes of the global economy. Now it has reached the center.

Extension

Due to inflation, high interest rates and increasing pressure on the financial system, the deepening crisis around the world has now reached the countries considered to be the center of the world economy. After the turmoil in the UK bond market last week, economists warned that the shocks could spread beyond the UK to other developed countries.

Meanwhile, speculations of bankruptcy of Switzerland’s Bank Credit Suisse have worsened the environment. Western media have said that if this bank collapses, the world may face a 2007-08 recession due to its chain reaction. Then the failure of the American bank Lehman Brothers caused the entire world to suffer from economic depression.

Last week, the British government drastically reduced the tax rate. After that, the prices of British government bonds and the British currency, the pound, fell sharply. The Bank of England (UK’s central bank) then took over the bond market by deciding to buy government bonds. But market experts have said that it is only a salve. This move by the Bank of England will further increase the rate of inflation.

The British journal The Economist has said in an analysis that Britain and Europe have been the most affected by the economic crisis and the United States is largely immune from it. But due to uncontrolled inflation, he too will not be able to survive the effects of this crisis for long. On the other hand, the American newspaper Wall Street Journal has said in an analysis that Britain is still playing the role of a warning bird. This should warn developed countries.

The Wall Street Journal said the U.S. Federal Reserve’s policy of raising interest rates has bolstered the dollar, but it has also rattled financial and financial markets around the world. These include developed countries. Due to inflation, Britain and European countries have adopted a policy of providing aid to their people, but due to this, there has been pressure on their exchequer. The debt burden on these countries is also increasing.

The Wall Street Journal has said – ‘The most worrying thing is that the UK is only the first country to suffer from high interest rates. Other countries may also suffer. How bad are the conditions? It is difficult to predict at this time because many risks are hidden. Such threats were later discovered in 2007.

Larry Summers, a former US Treasury secretary and now a professor at Harvard University, has said that the situation today looks like it did before the global recession began in 2007. He has said that when tremors occur, it is not necessarily always a severe earthquake. But such earthquakes never occur without aftershocks. Earthquake tremors are definitely being felt at this time. Other analysts have said that the crisis has so far deepened in countries considered to be on the fringes of the global economy. Now it has reached the center.

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