Protectionism Is The Real Threat Everyone Is Ignoring For 2011

Roger Nightingale of Pointon York spoke to CNBC about the threats to the global economy in 2011, specifically focusing on protectionism.

The interview begins at 2:20.

  • 2:30 The momentum from 2010 is going to carry into 2011, but there are worried about H2. The global tightening ongoing will threaten the rally. The cycle for the world economy will be turning in H2 2011, and combined with liquidity tightening, could lead to another recession.
  • 3:45 The big threat now is protectionism. If you get that, everything slows down. The temptation, if we get another slow down, to go that route will be high. The result will be a weakening of the strongest economies more than the weakest. Just look at the 1930s.
  • 4:45 The Europeans will do well in this situation. Europe is where protectionism will occur.
  • 5:20 China is the best developing economy in the world. The threat is it could be hit with protectionist policies. If the U.S., Europe, and Japan decide the can’t compete and legislate against China, it will have serious problems.


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