The month of July proved to be a time of crisis as Japan exports took the greatest slump in a period of over six months as exports to Europe, which is currently burdened with debt, and exports to China, suffering from a slow growth rate, fell considerably. This resulted in growing fears regarding the global demand following a chain of disappointing trade reports from the export engines present in the continent of Asia.
The manufacturing sector of Eurozone showed a sharp shrink in almost three years in April, while the data from Asia seems to be very impressive for the quarter. The numbers from the US manufacturing sector also showed a surprising rise in factory growth which left Eurozone as the weakest link in the economic chain with the austerity programs and fiscal crisis taking a toll.
Even as the economic depiction in the United States has brightened up recently with more positive employment figures, Europe remains held up in a slump. Most economists are estimating a recession for 2012, which will heighten the pressure faced by governments and financial institutions across the Continent.
The 12-member supercommittee, as it is called, has clearly failed to end their talks as expected. While the Democrats suggested an increase in tax for the wealthy, the Republicans were apprehensive about the Medicare programs and the inherent expenditure which is on the rise year after year. It has been a disappointing climax to a series of talks that has considered every possible alternative and yet has left things to an uncertain future in terms of tax cutting and government spending.
When the European Union and the International Monetary Fund agreed in July to provide a second bailout for Greece, this debt-ridden Euro nation, as well …