Tag Archives: downturn

The world economy – Watch out

The Economist issues an ultimate warning of another Recession

It is only a matter of time before the next recession strikes. The rich world is not ready

THE struggle has been long and arduous. But gazing across the battered economies of the rich world it is time to declare that the fight against financial chaos and deflation is won. In 2015, the IMF says, for the first time since 2007 every advanced economy will expand. Rich-world growth should exceed 2% for the first time since 2010 and America’s central bank is likely to raise its rock-bottom interest rates.

However, the global economy still faces all manner of hazards, from the Greek debt saga to China’s shaky markets. Few economies have ever gone as long as a decade without tipping into recession—America’s started growing in 2009. Sod’s law decrees that, sooner or later, policymakers will face another downturn. The danger is that, having used up their arsenal, governments and central banks will not have the ammunition to fight the next recession. Paradoxically, reducing that risk requires a willingness to keep policy looser for longer today.

Continue reading The world economy – Watch out

Canada’s labour pain: 1.3 million jobless

Canada’s labour pain: 1.3 million jobless, but not enough skills

By TAVIA GRANTECONOMICS REPORTER, The Globe and Mail

Some companies may be having a tough time finding suitable new hires – but Canada’s problem, at least right now, is not a labour shortage.

For all the hue and cry about shortages, it’s tough to find hard data to support the claims. The number of job vacancies, at last count, are at the same level as a year ago and so is the ratio of unemployed people to job openings. The Bank of Canada’s business outlook survey shows shortages are far less acute than before the recession. And while the jobless rate has fallen in recent months, 1.33 million Canadians are out of work, a higher number than before the downturn (it was 1.11 million in October, 2008).

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http://www.theglobeandmail.com/report-on-business/economy/economy-lab/canadas-labour-pain-13-million-jobless-but-not-enough-skills/article10595715/

Pakistan Preparing to Defend itself?

– Is Pakistan Preparing to Defend Herself?

by Meinhaj Hussain

The global economic downturn appears to be never-ending. Political unrest is acute around the world. The lack of respect for international law has never been greater. Nations are arming despite the downturn and doing so at a rate that does not suggest modernization or replacement. With all said and done, this could still not spell imminent danger. But with China arming Pakistan with such urgency as to forgo its own defense needs, something appears to be happening behind secure doors, walls, guards, wire-fences and surveillance cameras.

The Chinese military-industrial complex has been busy over the last two decades at full throttle, attempting to catch-up to the West. There have been many stumbling points, including a frustrating inability to produce quality turbo-fan engines for her fighters, the loss of top Electronic Warfare (EW) and airborne radar scientists and rivalries between different corporatocracies.

However, in 2011, China has finally reached a position where it can begin to see itself as comparable to the West in key aspects such as technology, expertise and military capability.

At the critical juncture where the successful J-10B is to enter mass production and produce a dazzling plane deploying AESA radars and other advanced military technology, we find a strange occurrence. China has dedicated its J-10B production to meet Pakistan’s pressing needs. Such a level of cooperation and collaboration is unparalleled in modern history. Not even the United States has been willing to act in a similar fashion with Israel.

The Soviet Union and United States have long had allied states but have never sacrificed their own defense needs for its allies in a similar manner. China is not only willing to send J-10Bs, 58 odd planes of which are being produced for Pakistan with special customization as per the requirements of the Pakistan Air Force, but is also handing 50 new JF-17 Block IIs with stealth technology and possibly AESA radars.

Meanwhile, the Pakistan Navy (PN) is slated for brand new submarines at financing that is beyond friendship prices and rates. Again, China’s latest submarine the Type 043 Qing Class, yet to be inducted into the Chinese navy and the pride of China’s technological and engineering elite, is being manufactured for Pakistan.

Six odd submarines, which are among the largest conventional vessels manufactured by humanity thus far and closer to the displacement of nuclear submarines, capable of firing nuclear-tipped cruise missiles and possibly a single ballistic missile are also part of a rapid program to transform the Pakistan Navy. The submarines are technological on par with anything the West can or has built with regard to conventional submarines. These behemoths and technological marvels are built on technologies that has taken over 20 years for China to develop including Air-Independent Propulsion (AIP) that allows submarines to stay submerged for weeks and (possibly) pump jet propulsion, a propulsion system yet to be implemented even in Western conventional submarines. …

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