The Bank of England between inflation and interest rates, Part 2

One of the key skills of the BoE is to keep annual inflation close to 2.0 percent. The British economy, which is still struggling to get out of the crisis phase, is currently linked to the crisis in the eurozone. The government has predicted that the ‘British economy will grow by just 0.7 percent next year, down sharply from the official estimate of 2.5 percent. The Chancellor of the Exchequer, George Osborne, proposed austerity measures in the most last week, warning that the economy will enter a new recession would break down if the euro area.
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The euro continues to lose ground

The ‘Euro yesterday came to a minimum of 11 months now after the European Central Bank chief Mario Draghi, has wiped out the hopes for more bond purchases by the EU. The euro was at 1.3003 against the U.S. dollar share, before falling below the threshold of 1,300. The resistance now lies at an altitude of $ 1.3090, which would also lead to a retracement of 50 percent compared to the recent share value to 1.2944.

Dragons in the European Parliament said that the possibility of purchase of debt securities by the ECB is a temporary thing, disappointing investors who hoped the purchase of bonds, which would have maintained stable returns. Dragons also said that 2012 will be a difficult year for banks in the euro area and the region’s economic recovery will likely slow.
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The French attacking Britain

Relations between Britain and France are at their lowest, after London and Paris have exchanged accusations of the state of their economies. Tensions were inflamed when the French finance minister has become the latest in a series of characters to attack the French economic management of the British government.

Francois Baroin said that the economic situation in Britain is very worrying, you prefer to be French rather than English in economic terms.

David Cameron has not spoken with Sarkozy since the French president described him as “an obstinate child.” In contrast, David Cameron has discussed the problems in the eurozone with several European leaders, including German Chancellor Angela Merkel.
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USA, the next quarter, employers will hire new staff

Employers in the United States plans to hire more workers in the first quarter of 2012, indicating a growing optimism about economic prospects. Manpower, the world’s second largest provider of temporary workers, said its employment index rose to 9 percent, the highest reading since 2008. The indicator rose for the first time this year. Manpower itself has interviewed more than 18,000 employers in the United States has conducted a quarterly survey, in which usually the margin of error is about 0.6 percentage points.

Surely a recovery in the world of work would increase the likelihood that consumer spending, which accounts for about 70 percent of the U.S. economy, will support the recent gains in the coming year. The uncertainty surrounding the outcome of the European debt crisis and the war on the U.S. budget, can be fully addressed only if there is an ever-expanding workforce.
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Gold, a valuable investment

The ‘gold is a well inside the foundation of any long-term savings, as well as in any investment portfolio. For centuries, especially during periods of financial stress and volatility, investors sought to protect their capital in assets that provide a safe store of value. A very powerful lifesaver is precisely the stability of gold, which remains attractive to investors, yesterday and today.

Since it is one of the few financial assets that are not based on the promise to pay, gold offers a refuge from default risk. It offers investors insurance against extreme movements in the value of other asset classes. Why would you want to invest a portion of your money in gold and it is something that everyone should do?
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The underlying problems remain EU

At least four are the main issues that have yet to be resolved, after the EU summit on Friday how much money is needed to protect the ‘Italy by a speculative attack, what to do if the banks were to stumble because of the crisis, discuss the isolation of Great Britain and, not least, if the treatment were decided in Brussels cure the disease in the euro area.

The crisis is far from over and there are risks that the agreement in Brussels to take hold until late summer 2012, as soon as possible. The agreement, according to which euro area accepts more surveillance and monitoring of national budgets to be part of the European Union ‘, was a big step forward. Despite its great slow it has come to this decision, the end markets have limited the options of political leaders and led everyone to give more support to the euro.
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Tomorrow the final day of the EU

European leaders are ready for the summit, which was announced as the last, best chance to save the euro, with the aim to settle a debt crisis that has become the greatest threat to the global economy.

With the ‘Europe against what the leaders called “the greatest proof for generations,” the nations of the European region are trying to unite behind a single plan and a single strategy, which could be as high as rewriting of the treaties’ EU to punish states that do not automatically covered, and by putting in place a process that would normally take years if not decades.
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What will happen to the British economy in the event of failure of the EU?

It is assumed today that if the euro zone were to fail, could help the UK economy in the long term, even more than if it were to continue to survive in these difficult conditions.

If Greece can not agree on austerity measures and economic aid if they can not seem to just show visible effects in the long run the country could be expelled from the euro zone. If this scenario were to happen, then you might predict that other weak economies, like those of Portugal and Ireland, may be expelled. The biggest concern right now is that the larger economies, such as those of Italy and Spain, are both very vulnerable. What was once unthinkable is becoming more probable: the Greek crisis has triggered the disintegration of the euro.
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The European crisis seen by European political

After the last of our currency increases, there are those who think that we can have maybe two or three days of calm, but nothing has really changed. Spain, for example, has stopped growing in the third quarter, creating doubts about its deficit reduction targets.

European leaders are still in crisis over how to tackle the deep crisis, growing pressure on the European Central Bank in order to act more forcefully. According to many, the ECB will become a complete provider of last resort, like the Federal Reserve and the Bank of England. According to the British prime minister, Cameron, there is turbulence in the markets and the real question is whether countries are able to deal with their debts.
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The Fed will meet on 24 and 25 March, but will decide what? – Part 2

Continuing the discourse on the Fed started in the last article, we can say that, in addition to the unemployment problem, including the costs of gasoline have injected a new note of concern among consumers, going to affect confidence in themselves and raising doubts about whether a recent shooting in consumption can be sustained.

‘S U.S. economy grew at an annualized rate of 2.8 percent in the fourth quarter, a respectable performance but not fast enough to return soon to the labor market in good health. Some economists thought that there might be growth around 4 percent during this quarter, but the projections say otherwise however, lowering the estimates were made, partly because of an unexpected widening of the U.S. trade deficit.
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