There are conferences and meetings, politicians running from pillar to post and trying to avert a disaster that is becoming a prolonged nightmare. Stock markets indexes are like traffic lights that got mixed up; sometime green and mostly red.

Amid all this, there are deep fears that the fragile global economy is heading towards a new financial crisis that is going to destroy the money that is already invested after 2008. The most worrying part is that what will happen afterwards and who will put up with the bills of the last two years shopping?

Politicians’ role

British Prime Minister, David Cameron has said that failure by the US and European leaders to deal with their deficits would push the world into financial crisis and urged for a new approach to deal with this matter. He said that world economy is threatened by the huge deficits piled up on both sides of Atlantic.

Everyone is worried about this and world’s biggest economies are gradually sinking into recession. Politicians are struggling to cope with this unprecedented financial crisis while masses are on the roads protesting to make it even harder for politicians to work on remedies to come out of this mess.

Politicians are busy warning one another too as Cameron warned US and Eurozone leaders to put their foot down on deficit and work to stimulate development. He urged the leaders on both sides to show leadership and leave clumsy-footed approach aside. If we look at US, both parties are embroiled in a partisan struggle to curtail deficit or debt ceiling.

The signs of agreement are far while election is around the corner making it impossible for any groundbreaking decision to come out. In other words, the world economy can go to hell while American politicians are busy playing their internal dirty games.

Center of storm

Eurozone is struggling to curtail huge debts and deficits piled up by mainly four countries that needed bailout packages and are on a lifeline provided by Germany, France and even IMF. Where Germany has the lion’s share in this process, now the patience is running out of the efforts and leaders are encouraging other countries to take matters in to their hands and work collectively to avoid new financial crisis approaching.

It is a delicate approach where governments are nationalizing ailing banks and trying to bolster the European rescue fund for troubled countries. The question is whether Eurozone has pushed itself into a hole, which it is vigorously digging to come out?

Stalled growth, but mounting expenses

With expenditures are showing no sign of coming down, the bailout seems to fail. Economic growth has stalled resulting in an increase in deficits. The US and Eurozone countries have implicitly failed to curtail their deficits and in return, their actions are threatening the world with more financial worries in coming days.

Investors are increasingly worried sort of held hostage to uncertainty mostly spread by media. These fears result in frenzy of selling of shares and bonds no matter how much the central banks try to inject more money into struggling economies.

Overcoming crisis

The world leaders are urged to take bold actions with determination, especially the US politicians need to overcome their differences and restore fiscal sustainability to reassure the markets and investors that it are serious in averting any serious threats to economy.

Eurozone leaders need to act quick confidence in their markets and ailing economies like Greece and Italy. The issue of deficit has to be taken head on while serious efforts are required to bolster the economic growth, which would pull the economies out of troubled waters in the end.

An article is written by Ferdinand, who likes modern web trends, antivirus software,  android, traveling, pc antivirus, networking and music.

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