Opinion (Chris Richardson , Deloitte Access Economics director, from ABCNews): “The latest quarterly Business Outlook by Deloitte Access Economics forecasts that Europe will be the key to growth globally and locally this year.
“The report, titled ‘Eurogeddon,’ warns that 2012 could easily bring a deep recession and widespread bank failures in Europe.
“Deloitte Access Economics director Chris Richardson says there is a 50-50 chance that Europe will muddle through the crisis….
“Mr Richardson says the European Central Bank is containing the situation by pumping money to the banks in the form of discount loans.
“’The money that Europe’s central bank is pumping out is working very effectively as sticky tape,’ Mr Richardson said.
“’It is going to the banks, but the banks in turn are passing indirectly some of it back to governments and that combination is holding Europe together.’
“But even if the sticky tape does hold, Deloitte still expects Europe’s problems to weigh on parts of the Australian economy.
“More finance jobs are likely to go, the unemployment rate is expected to rise to 5.5 per cent, and Mr Richardson, who describes Europe as a “seething cauldron of risk”, says the effects already are being seen in workplaces around Australia.
“’You’re getting employers who are giving employees overtime rather than taking on new people,’ he said…
“’At some stage China will have an ugly year and when they do it will be pretty bad news for Australia.’”
Comment: The sooner politicians and economists learn that the world is completely interdependent, the more chance there is to overcome the global Armageddon peacefully. In the meantime, everyone cares only about himself, blinded by his egoism, not realizing our total interdependence.