World Bank chief: Global economy in 'new danger zone'

The head of the World Bank warned Sunday that many key market players have lost confidence in recent weeks, pushing the fragile global economy into a "new danger zone."

Speaking to members of the Asian Society in Sydney, Australia, Robert Zoellick said events the past few weeks in Europe and the United States already have had an adverse impact, and could signal even bigger problems ahead. Several European nations continue to struggle with high debt, slow economies and other issues, while U.S. politicians went to the wire before they raised its debt ceiling -- only to see credit agencies downgrade its credit rating, and stock markets flounder.

"There was a convergence of some events in Europe and the United States that has led many market participants to lose confidence in the economic leadership of some of the key countries," Zoellick said.

http://www.cnn.com/2011/BUSINESS/08/14/world.bank.danger/

U.S. economy's wild ride is far from over

Congratulations on surviving the U.S. stock market's wildest week ever -- when the Dow registered some of its biggest ups and downs, gold briefly surged above $1,800 an ounce and interest rates on downgraded U.S. Treasury bonds fell to record lows.

In the end, the Dow closed down 1.5% for the week.

That was after stocks rose for a second straight day Friday after investors were drawn to the more positive of two economic reports. The monthly retail report showed consumers spent more on autos, furniture, clothing and gas in July, pushing up retail sales by the largest amount in four months. That seemed to outweigh concerns over a key consumer sentiment index falling to its lowest reading in more than 30 years.

http://www.freep.com/article/20110813/BUSINESS07/108130414/U-S-economy-s-wild-ride-far-from-over

Employees Bid Farewell to Corporate America

With the U.S. unemployment rate at 9.1 percent as of July 31 and a fragile economic recovery underway, many workers feel they are left with no choice but to take their careers into their own hands.

Employees are bidding farewell to corporate America in the hope of finding a more secure, or at least fulfilling, future. They are reinventing themselves by starting their own companies or by pursuing long-put-off dreams that include creative or charitable endeavors.

While it might seem like a bold move, countless workers believe the abundance of uncertainty in today’s job market mitigates the fear factor.

http://www.cnbc.com/id/42822615

0% Interest Rates Lock in Inflation

The decision by the Fed, last week, to keep a key interest rate at near zero percent for 2 years is historic because the Fed has never done this before. This action will have profound negative effect on the U.S. dollar and its buying power. It also signals that even the Fed thinks the economy is not going to get better for at least 2 years. This action will affect every American and telegraphs a policy of inflation by the government. In November of 2009, I predicted this very path in a post called “The Fix is In.” Back then, I said, “It appears the “fix” is in as far as the road plan for the U.S. dollar and economy. The government and the Fed appear to have chosen a path of inflation for America and the world. This is not an official announced plan but it might as well be.”

http://usawatchdog.com/zero-interest-rates-lock-in-inflation/

A big bounce, ounce by ounce, as gold takes off

Welcome to the new American gold rush. The price of gold is on a remarkable run, setting a record seemingly every other day. Stomach-churning volatility in the stock market this month has only made investors covet gold more.

Some want it as a safe investment for turbulent times. What worries some investors is that many others are buying simply because the price is rising and they want to make money fast.

http://finance.yahoo.com/news/A-big-bounce-ounce-by-ounce-apf-2335343368.html?x=0

What went wrong with the global recovery?

As recently as six months ago, mainstream economic forecasters were expecting real GDP growth to be comfortably above trend in 2011, and surveys of business activity were hitting new peaks. Of course, everyone knew that the underlying condition of the western economies was still very weak, but that did not seem to be sufficient to prevent a continuing normalisation of economic activity, with GDP returning slowly towards pre-recession trends.

http://blogs.ft.com/gavyndavies/2011/08/18/what-went-wrong-with-the-global-recovery/#axzz1VRnaQ4NG