Global Recession
June 25, 2012 4 Comments
For over a decade now I have enjoyed reading Swaminathan S. Anklesaria Aiyar’s Sunday TOI editorial column Swaminomics.I like his insight and willingness to call a spade a spade.Read and enjoy his article below.
Bad news: World is sliding into a new recession
24 JUN, 2012,SWAMINATHAN S ANKLESARIA AIYAR,TNN
Many rich countries have struggled for three years to emerge fully from the Great Recession of 2008-09 . Alas, the world is slipping into a new recession. No global authority has dared say so, but the writing is on the wall.
A classic lead indicator of a global recession is a crash in commodity prices, which is evident today.
Brent crude, the benchmark variety that determines Gulf oil prices for India, has fallen from $125/barrel in January to barely $ 90/barrel. Major global commodity indices have slumped over 20%. Mittal and Tata are closing some global steel plants because of falling demand. Prices of non-ferrous metals, cotton, coal and iron ore have crashed. Read more of this post
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