The article is about Half-hearted approach to avert new financial crises won’t work. World economy has never endured so much throughout the modern mankind’s history, as much it has been hit in the last few years. A recession, fears of crumbling governments under debts and mounting deficits are the hallmarks of this modern-day disaster slowly coming to reality.
Politicians across the world are stuck between a wall and a hard place where they seem to be squeezed by every passing day. This is a time where true leadership and bold actions would save the day. The days of patching-up are over and concrete measures at strengthening the ailing economies would be the key to save this world from new financial crises.
Failure in dealing with these circumstances could be devastating and politicians dread the day they have to face the electorate amid these circumstances. American politicians are busy fighting it out at the expense of their economy; in order to humiliate, Obama congress is trying hard to hit Obama where it hurts. On the other hand, Eurozone troubled economies like Greece and Italy are failing to curtail deficit and increase economic activity.
The bailout after bailout is coming to a point where lenders might think to take drastic steps. The perfect storm in the shape of European financial crises is threatening to destroy Euro; the single currency and the economies attached with it. In short, the deficits issue is the biggest threat to the world economy today.
Central bankers and investors are struggling to gain each other’s trust and working hard to reassure each other. Where investors are worried, central bankers are pumping billions into the markets to stabilize them. The issue is threatening the core of this whole financial system that the world is getting weary of.
Occupy Wall Street sort of movements are coming out in every country and politicians who rise above the situation would be the winner of the day. The solution would not be cutting core of deficit only, but radically adopting a new approach to analyze the causes that created this rises and then finding groundbreaking approaches to put them on a stable track.
Leadership is vital in this crisis, as the time is of essence and leaders showing weakness to lead could throw their economy and world economy with it into turmoil. Leaders who show weakness in taking risky decisions at the cost of their political future might not always end up the victors.
The voters also have a completely different understanding of the situation now, as they are the one who pay the heaviest price for the mistakes made by many including politicians and economists. Ultimately failure by leaders to take action on budgets would ultimately threaten their political survival, because such lack-luster moves would not go far!
All the pundits are warning that the world economy is in danger zone and new financial crises could be around the corner. IMF and World Bank chiefs warned that the world is now facing a crisis that is prolonged and unless leaders show “political determination” to set the recovery back on track, the situation would not get better, but go worst.
With elections in most of the major players coming next year, voters would be voicing their opinion for those who would lead the country out of trouble rather than piling up on failures pushing the world farthest into dire straits. Until the realization of failure of all the current approaches sinks in, all we would be doing is to fight the fire off, not eliminating the causes of fire.