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ECONOMY TAKES A TURN FOR THE WORSE
By Greg
Anderson
Rising oil prices and the fear of war are sinking the global economy.
Analysts say that prospects for the global economy are so cloudy the options to repair it are limited.
Around the world, especially in the United States, planning for the future has become something of a worry for many American consumers, investors and businesses.
Paul Kanischak, a vice president at Merril Lynch, feels that actions being taken now are only worsening the situation.
“American Investors don’t know what to do right now,” Kanischak said. “Many people are taking their money out of the stock market and cutting their loses, which just leads to further decline in the market.”
Oil is also a significant issue in this matter; according to an article in the NY Times crude oil prices have hit their highest levels since the Persian Gulf War in 1991. In an effort to assess how prices will move, analysts have looked at the past. As in the fall of 1990, the massing of American troops near Iraq and fears that oil supplies from the Persian Gulf will be disrupted have lifted the price of oil well above $30 a barrel for weeks.
However, according to industry analysts, that is were the similarity ends. While few experts expect a war to lead to shortages of oil, most doubt there will be a replay of the events of the Persian Gulf War.
Another aspect of the crumbling economy is the heightened security measures being taken since the attacks on 9/11. With airport security increased people are afraid to fly.
For VP of Client Services for Meridian VAT Reclaim Robert Bosselman international travel is essential.
“Most of our business relies on international travel and commerce,” Bosselman said. “If our clients don’t want to travel or trade with other companies, we loose out as well on their tax reclaims.”
With the recent events of the past 2 years, and the way things are going right now the economy has taken a turn for the worse, and is currently showing no signs of making a recovery.