The world is going to become richer and richer as developing economies play catch up over the coming years, according to Willem Buiter, chief economist at Citigroup. "We expect strong growth in the world economy until 2050, with average real GDP growth rates of 4.6 percent per annum until 2030 and 3.8 percent per annum between 2030 and 2050," Buiter wrote in a market research. "As a result, world GDP should rise in real PPP-adjusted terms from $72 trillion in 2010 to $380 trillion dollars in 2050," he wrote. As the world watches oil prices rise sharply amid unrest in the Middle East, Buiter's analysis of the world's long-term prospects offer some hope that better times are ahead but if he is right power will shift from the West to the East very quickly. "China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050," he predicted. One Way Bet on Emerging Markets? Growth will not be smooth, according to Buiter. "Expect booms and busts. Occasionally, there will be growth disasters, driven by poor policy, conflicts, or natural disasters. When it comes to that, don't believe that 'this time it's different'." However, there are some easy wins for poor countries with big, young populations, he said. "Developing Asia and Africa will be the fastest growing regions, in our view, driven by population and income per capita growth, followed in terms of growth by the Middle East, Latin America, Central and Eastern Europe, the CIS, and finally the advanced nations of today," he wrote. "For poor countries with large young populations, growing fast should be easy: open up, create some form of market economy, invest in human and physical capital, don't be unlucky and don't blow it. Catch-up and convergence should do the rest," Buiter added. Buiter has constructed a "3G index" to measure economic progress; 3G stands for "Global Growth Generators" and is a weighted average of six growth drivers that the Citigroup economists consider important: Using that index the nations to watch over the coming years are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, the Philippines, Sri Lanka and Vietnam. "They are our 3G countries," Buiter said. Kurt Nimmo Friday, February 25, 2011 The banksters are making it known. You’re going to be a pauper. The mega-bank Citigroup has trotted out its prime economist to send the message. “China should overtake the US to become the largest economy in the world by 2020, then be overtaken by India by 2050,” said Willem Buiter, chief economist. He also sat on the Bank of England’s Monetary Policy Committee. In order to accomplish this, the banksters will whipsaw the global economy. “Expect booms and busts. Occasionally, there will be growth disasters, driven by poor policy, conflicts, or natural disasters,” warned the economist. It has little to do with the weather. Central banksters create monetary inflation and credit expansion and thus engineer artificial booms and inevitably busts that work like a sledgehammer on humanity. “Just as the boom builds outward from banks to the rest of the economy, with banks benefitting the most, the bust collapses inward to banks from the rest of the economy, with banks suffering the most,” writes Jeffrey M. Herbener. “Now the balance sheets of fractional-reserve banks, swollen with loans and checkable deposits during the boom, suddenly collapse. Or rather, the value of their loans collapses initially, as the projects they lent to turn out to be unprofitable, leaving them with negative net worth…. The monetary inflation and credit expansion of the boom are now reversed in the bust.” Buiter and Citigroup have created a neat little index to explain all of this. It’s called the “3G index” to measure economic progress – or progress as gauged by banksters. “Using that index the nations to watch over the coming years are Bangladesh, China, Egypt, India, Indonesia, Iraq, Mongolia, Nigeria, the Philippines, Sri Lanka and Vietnam,” reports CNBC. “They are our 3G countries,” Buiter boasted. It is no mistake they are third world hellholes ruled by authoritarian dictatorships. Banks and transnational corporations love place like Vietnam where slave laborers work seven days a week for six cents an hour. In Bangladesh, factory workers earn about $38 US per month. Indonesia factory workers make about $2 per day. In the Philippines, sweatshop workers earn less than half of the cost of living. In China’s electronics factories, run like military dictatorships, the suicide rate among workers is staggering. Drones work 15-hour days for $50 per month. Egypt just underwent a revolution, in large part precipitated by high unemployment and poverty. It was shamelessly exploited by AT&T, Google, Facebook, NBC, ABC, CBS, CNN, MSNBC, and MTV. Google exec Wael Ghonim was designated as an impromptu leader of the revolt by the corporate media. The third world slave labor hellhole model is what the banksters and their soulless corporations have in mind for the entire planet. Revolutions and rebellions in response to intolerable conditions – half the world, over 3 billion people, live on less than $2.50 a day – will henceforth be micromanaged by financial elitists and turned into harmless (for the elite) televised entertainment super events that do nothing to address the needs of billions of people. China and India overtaking the United States as the economic dynamos of the future is no mistake. It has nothing to do with hurricanes or mudslides. Globalism demands a prison planet ruled over ruthlessly by a small hereditary elite. In a few short years, the American people will suffer like the factory workers of China’s sprawling electronics factories and Vietnam’s garment shops run by Nike and Adidas.US Will Be the World's Third Largest Economy: Citi
Bankster Economist Heralds Third World Hellholes
Saturday, 26 February 2011
The world is going to become richer and richer as developing economies play catch up over the coming years, according to Willem Buiter, chief economist at Citigroup.
CNBC.com
© 2011 CNBC.com
Posts
