Wednesday, November 12, 2014

So Called Experts.

Capitalism is full of economic "experts" who claim they can forecast rises and falls in the world's markets but this is a complete falsehood as recent developments have shown. Take the case of the  European Commission, the executive arm of the European Union.  The commission slashed growth expectations in the 18-nation eurozone to 0.8 percent from a forecast in the spring of 1.2 percent. 'Italy appeared to stand out as a poor performer: Its economy was predicted to shrink 0.4 percent this year compared with a forecast in the spring for growth of 0.6 percent. The gloomier outlook, especially in the euro area, is a measure of how quickly optimism about a recovery has dissipated as France has failed to grow as hoped and as Italy struggles to make overhauls, and amid signs that the German economy has stalled. Germany is expected to post growth of 1.3 percent this year, down from an earlier forecast of 1.8 percent. The French economy is expected to grow 0.3 percent compared with a forecast in the spring of 1 percent.'  (New York Times, 4 November) As these apparently small percentage falls represent billions of pounds it illustrates how capitalism is a completely unpredictable society despite the expert's forecasts. RD

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