20 November 2010

Expecting A Bumper 2011? Guess Again

One of the things pundits do is to guess (er I meant predict) the coming activity.

There are a number of factors as in everything that will give us a view of what the next year is going to look like. So as we enter the last 50 days of the year we can start to see that 2011 is going to be a year of uncertainty.

Lets start with the political scene. The USA will have a government that will have a hard time working together. Two houses with different leaderships. Not a good representative of smooth harmonious government. Coalitions will be the order of the day and shall we say that makes for cautious government, this affect the USA, The UK , Oz not to mention France and many other nations. We have the PIIGS (notice the extra I). We have the bailout donor nations suffering big time with austerity measures to cover the cost of the banking system bailout. In my view this will create a vacuum into which different players will step.

On the Geopolitical stage - we will see a rise in tension in different spots of the world. China will start to flex her muscle in this vacuum. Terrorism is raising its ugly head. Just look at this week's panic over the test device in Namibia.

The EIU - Economist Intelligence Unit also believes that we face a year of slowing growth and well complicated conditions. Interest rates have to rise. The ripple out effect of the banking mess will continue to affect broader portions of the economy as loans become harder to get and cost of money rises significantly.

So brace yourself... its going to get pretty tough...

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