The market continues to push onward and upward, breaching the Dow 11,000 barrier.But doubts linger across the economy about whether or not this recovery is real, and what will be next big crisis to bring it back to reality.
Those questions range from the solvency of state governments, to the reach of regulation, to whether or not one of the world’s most powerful currencies will continue to exist.
As a result of the financial crisis, countries around the world have had to bailout their financial systems and the result has been swooning government deficits.
Those deficits are funded by debt sales, of which thus far there has been an appetite. Some are suggesting the Fed is propping up U.S. auctions already. Further, some auctions are showing signs of flimsiness. Banks, which already have troubled balance sheets that could be hiding further problems, are expected to mop up more and more government securities.
If appetite was to decrease for key developed economies, government spending could be endangered, forcing another economic downturn, of which there would be no stimulus to save the economy.
The euro has gone from being heralded as a potential new reserve currency to being in existential doubt in a year's time. The currency union has come under threat from the debt on its periphery, in the PIIGS economies of Portugal, Italy, Ireland, Greece, and Spain.
Survival will be based on whether or not euro zone members can come to a solution on Greece, which they can apply to other PIGGS states without compromising the more fiscally conservatives views of countries like Germany.
The China bubble is one of the most talked about potential economic events in the world today.
The argument is over whether or not Chinese government spending and low government interest rates around the world have flooded the market with cash that is now driving a mis-distribution of funds. That mis-allocation of capital has found its way into real estate, according to many prognosticators.
It is likely China is in line for some sort of correction, whether it is a soft or hard is up for debate.
Oil has been sighted as the spark that kindled the financial crisis in 2007. Now its being talked about as the one commodity that could crush the chance of a comeback.
Professor James Hamilton has called $90 a barrel a point of potential disruption for the global economy. He's cited the fact that 10 of the last 11 U.S. recessions have been immediately proceeded by an oil spike.
If an oil spike does occur, is there anyway the world economy could still throttle forward out of recession?
Financial regulation is set to boom in Washington D.C. as Chairman Dodd's financial reform bill moves closer to reality. But there are also international expansions, in the Basel Accords and a potential Tobin Tax, lurking set to take more liquidity and capital out of the banking system.
The Basel III regulations would see banks have to have a more solid capital base than previously necessary under Basel II. The Tobin Tax would see every bank transaction taxed, like a VAT on financial services activity, which would undoubtedly hit banks and consumers alike.
When these moves come into being, banks ability to offer credit, already under threat, would face further restrictions limiting the potential for lending that could create economic growth.
Hyperinflation is one of the nightmare scenarios of the mind of every debt hawk around the world. The U.S., in a quick and dirty attempt to pay off its debt, takes quantitative easing to the extreme putting more and more cash into the system, devaluing the currency, with inflation the result.
Unable to control this money supply expansion, hyperinflation over takes markets, sending the country into a paper spiral which results in a Wiemar Republic wheel barrow of dollars for bread scenario.
Prior to the Great Recession, the debate was about whether or not emerging market growth was decoupled from the developed world's demand. While emerging markets like China and India came out of the recession faster than their Western counterparts, the recession made evident their reliance on North American and European demand.
But it is the growth of domestic markets, in China and India, which is now leading the rest of the world out of this downturn. Carrying the western world on their backs, the BRICs are asserting themselves as the market leaders, rather than followers.
But has this been a product of profligate government spending, rather than natural growth? Or are the fundamentals just so strong in these economies that they can only grow, without question?
The Great Recession has led to a reassessment of the world's fundamental belief in free-markets the size not seen since the question of communism was posed, and passed, with the rise and fall of the Soviet Union.
The critique is thoroughly postmodernist though, not trying to completely redefine the system, rather to pose questions and offer lateral solutions to its failures.
George Soros has put together a crack team of thinkers to change economics. Will that change be away from the freedom that has powered the global economy towards an intelligent mastery of the marketplace?
The recession is over, or so it seems. So why aren't firms hiring?
Successful businesses have cut costs since 2007, seeking to squeeze profits out of reduced spending. Now with the economy returning to growth, many businesses have not seen the need to take up new employees, as they continue to clean up their balance sheets.
At what point will economic growth mean a rise in employment numbers? Or is this balance sheet recession dooming the economy to anemic job growth?
China is being pushed and shoved by everyone from Paul Krugman to Congress has come out against the current yuan peg to the dollar. The result has thus far been inaction from China, as they seek to both protect their economy and save face in front of global pressure.
What is apparent is that China will revalue the yuan, but not as a product of foreign force. The country will make its decision when it chooses to, but the question is when.
Housing moves were the forebear of the last economic crisis and some think they could be the catalyst for the next. A double dip could occur as a result of high unemployment, which prevents consumers from being able to pay their mortgages, thus increasing the likelihood of default.
If those defaults pile up, banks are then impacted by the double dip, must reduce their lending to cover losses yet again, and the economy would tumble as a result. The government may be forced to intervene in the mortgage market again, or they might not have the cash to do so.
The Federal Reserve under Chairman Ben Bernanke has been hinting its intention to raise rates and tighten monetary policy. That tightening could hit the economy too quickly and halt the growth trend that has pushed the country out of recession.
But if interest rates are raised, is the economy prepared to sustain?
While some are already clear, further expansion of tax policy such as a VAT is still being debated. While individuals like Paul Volcker are in support, others question what the impact of such a move would be.
States across the country are facing debt crises that are forcing governments to make difficult decisions about where to cut spending. Many of these state debt assessments don't even include underwater pension funds.
States across the country are starting to make similar cuts.
But with tax receipts declining, will these cuts be enough to stop states from grasping for more federal aid?
The rapid rise of Chinese investment in developing countries for the purpose of extracting their raw commodities is giving rise to the belief that we may be on the brink of another colonial age.
China isn't alone in this quest, as European governments and the United States have sought to sure up deals in places like North Africa and Iraq, which may provide preferential exports in exchange for government and economic support.
If the world is moving towards another competitive age of colonialism, expect the map to be carved up in another 'great game.'
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