Eurozone Debt Crisis - What are your predictions on how this crisis Essay

Eurozone Debt Crisis - What are your predictions on how this crisis will develop in the second half of 2011 and what impact will - Essay Example Soon after this optimistic representation of the future global economy, Greece made headlines, where the investors started asking if it would be ever possible for the country to â€Å"pay off the ?259 billion in government debt it currently owes’ (Khan, ibid). Soon Ireland and Portugal followed suit, while predictions show bad signs for Spain and Italy (Lucas, Find Safe European Stocks out of Unsafe Europe , April 2011). Thus, we find that Euro has taken a deep battering from the start of the new decade, with widespread fears that this economic crises may lead to the break-up of the Eurozone. Discussion In recent news published, we find that it presents gloomy figures, â€Å"The Eurozone crisis has gone from bad to worse as debt contagion threatens to engulf Italy. With analysts predicting that Britain could lose as much as ?43 billion should the Italian economy fold, Chancellor George Osborne called on his Eurozone colleagues to take "decisive action" before the situation g ets any worse. He also warned that Britain was "not immune" from the crisis† (Clarkson, Q&A: How will the latest eurozone crisis affect the UK? 2011). Thus, we find that the economic recovery has again hit a critical roadblock, where the economist Peter Spencer on 18th July 2011 stated, "The risks to the world economy and the Eurozone are plain to see, starting with the Greek default, threatening a domino effect on Portugal and Ireland, followed perhaps by Spain and Italy"(cited in, skynewsHD, July 2011). In review by the Ernst & Young group, we find that the predictions are not very optimistic for the second half of the year. In this report, it is stated that the economic forecasts show every indication of an increasing â€Å"EU sovereign debt crisis† (Ernst & Young Eurozone Forecast, 2011, 4). The review also shows that it is almost impossible to avoid the non-payment of the debt incurred by the Greece government. Similarly it would be also impossible to frame an econ omic restructuring, and in probability the country would require another bailout loan. However the review further adds that â€Å"a restructuring nor a bailout are in themselves likely to provide lasting solutions and restructuring would almost certainly carry in its wake the necessity of similar exercises for Ireland and Portugal. An additional uncertainty is whether debt restructuring comes via an orderly or disorderly process. If it is the latter, the risk of contagion to other countries increases and the Eurozone’s reasonably healthy growth prospects for 2011 and 2012 are likely to be extinguished. In fact, the economy would go backward† (ibid). Fig 1: The table below shows GDP growth rates for the European Union and select individual countries. Here we find that the 2011 and 2012 growth predictions vary from 4-5% for countries like Turkey and Poland, and an average of 1-2% for the PIIGS countries at the other end (Source: Lucas, 2011). The graph shows a picture wh ere we find that majority of the countries perform badly (economically) in 2011, with indications of a slightly better show in

Critical thinking Essay Example | Topics and Well Written Essays - 1500 words - 1

Critical thinking - Essay Example g or valid reasoning is also widely used in reporting events that is happening around us, tell jokes to our friends and colleagues, extending an invitation to a special someone, making promises to other people, telling stories, giving orders or instructions to our subordinates or co-workers, describing something, entertaining other people, the act of evoking emotions, and a lot more (Fischer a, pp. 15 - 16). To have a good critical thinking, having a good logic is never enough in enabling us to solve problems. It is equally important for us to have positive attitude and the necessary skills and knowledge in terms of solving problems. With regards to the importance of critical thinking, the definition of critical thinking as mentioned by Alec Fisher and Friedrich Nietzsche will be discussed followed by comparing and contrasting the two traditions of critical thinking. As part of going through the main discussion, specific examples coming from its respective texts will be provided accordingly. As part of the conclusion, my personal reflection will be expressed in details explaining how I view the two traditions of critical thinking as explained by Fisher and Nietzsche. Alec Fisher acknowledges the different definitions of critical thinking as provided by the famous contributors behind the development of critical thinking which includes John Dewey, Edward Glaser, Robert Ennis, Richard Paul, and Michael Scriven. According to Fischer, John Dewey – known as the ‘father’ of the modern critical thinking tradition defined critical thinking or ‘critico-creative thinking as â€Å"active, persistent, and careful consideration of a belief or supposed form of knowledge in the light of the grounds which support it and the further conclusions to which it tends† (Fisher b, p. 2). Upon analyzing the definition of critical thinking as provided by Dewey, it simply means that critical thinking is an ‘active’ process or the process wherein the receiver of information or