The year 2012 is synonymous with real change, as the consequences of the economic decisions made by our governments, will either bring us out of recession or add to the problems caused by the 2008 market crash. What are the eight probable economic trends in 2012?
1. Declining Values in the Euro, and Greenback
The greenback and the euro continued to decline in value against most currencies in 2011. This irreversible trend probably will last in 2012, when quantitative easing could continue to be the only solution the ECB, and Federal Government have to offset a recession, further eroding global confidence in both currencies. The question is how much in value will these currencies fall in 2012?
2. Rising Values in Precious Metals
One way investors protect themselves against a currency in decline is to buy gold, and silver, which has risen in value both against the US dollar, and Euro since 2008. Countries like China, and India are buying these precious metals in far greater volumes, which consequently adds value to their own currencies. Gold and Silver prices could still remain at an all time high in 2012, as demand continues to outstrip supply.
3. A Market Crash?
Economic indicators show that the current European, and American stock markets are overvalued -as their current values simply do not match to the real state of their economies. If governments are restricted in printing money in 2012, then who is willing to feed these funds into the stock markets? Once confidence after almost four years of recession disappears- the stock markets in Europe & the USA could crash again.
4. Rising Civil Unrest
2012 could continue to be another year of cutbacks, as our leaders justify this as the only way to stem a crash, and build confidence in their economies. The result of previous cutbacks were evident in the streets of Athens, Brussels, Cairo, London and Rome in 2011, but there is a trend growing that more people view these cuts as unfair. If financial institutions and governments cannot sell these cutbacks to the public, then 2012 could be a year of further dissent in many recession hit countries.
5. Wealthier Resource-Rich Countries
The resources which fuel oil dependent economies are growing shorter in supply, as many countries like Brazil, China, and India are growing more economically strong. The nations, and corporations that supply these valuable resources are reaping the rewards of this demand, and fuelling new domestic demand for consumer goods like air conditioned units, computers and televisions. This trend should continue as these basic resources are still needed in an age of dependency on non-renewable energies.
6. Growth in Technology Sales
On a global scale, sales of technology based consumer products like computers, and smart phones continue to rise, as prices for these products continue to drop. This naturally leads to more people being able to purchase an android phone in many developing companies, and fuels growth for any company that produces ever cheaper technology like Asus and Nexian.
7. The Growth of Regional Economic Blocs
China is getting closer to South East Asian nations over a probable free trade pact, as well as several Latin American countries. Russia is extending a free trade zone to its bordering nations, whilst the US is focusing on bolstering ties with its traditional allies in Asia, Africa, Europe and the Middle East. Rather like a jigsaw that is coming to completion, the picture in 2012 could be of a rise in regional trade blocs- under the guise of free trade.
8. The Degeneration of Established Organizations
The IMF, UN, and the World Bank often dictated how and who would receive loans in much of the World. This 'troika' often financed corrupt regimes, and these countries later complained that the policies they accepted in return for these funds indebted rather than developed them. 2012 could mark the beginning of the end of the influence of these organizations- as nations choose financial and free trade deals within' their own trade groups.
2012 could become a year where the steady shift of economic power drifts East away from the West, as the producers and suppliers of resources gain more dependence from the consumer states in Europe and the USA. How this shift is viewed in the debt ridden consumer based societies of Europe, and the United States- could determine whether 2012 is a year of growth or one of continued uncertainty.
Discover how you can survive and thrive during a period of economic change.
Article Source: http://EzineArticles.com/?expert=Mark_W._Medley
