Description

The world economy remains in a volatile state. Fragility, low confidence, and the risks of overleveraged societies continue to threaten further economic decline. The United States continues to sink deeper into debt; Europe, forced into austerity, is facing major financial turbulence. Japan is recovering from a natural disaster that has left it nearly paralyzed; the Middle East is in chaos, and the structural system of Asia is of concern. According to the Bank of International Settlements, total industrialized country public sector debt is now expected to exceed 100 percent of gross domestic product (GDP), something that has never happened during a time of peace.The globalization of world economies means that the U.S. remains intertwined with the affairs of others. Should economies remain fragile, the failure of one country could lead to a depressive shock to the others, leading to economic contractions potentially worse than 2008. It is necessary for countries, especially the United States, to structurally strengthen their economies, achieving a resilience that will be able to withstand significant volatility and challenges in the future.