The European Commission has cut its forecast for economic growth in the eurozone this year. It has cut its prediction for the 19-country bloc in 2016 to 1.7% from the 1.8% it had forecast in November.  That figure would still mark a moderate increase from the figure of 1.6% in 2015. The Commission said government spending had been unexpectedly high because of the number of migrants arriving in Europe, which had boosted GDP.  But it warned that the crisis posed "major political challenges" that could undercut growth if not properly handled.  And vice-president Valdis Dombrovskis said: "Europe's moderate growth is facing increasing headwinds, from slower growth in emerging markets such as China, to weak global trade and geopolitical tensions in Europe's neighborhood."  "It is important to continue structural reforms that can help our economies grow, withstand shocks in the future and improve job opportunities for our population." The Commission cut its inflation forecast for this year from 1.0% to 0.5%, even further below the European Central Bank's target of about 2%. Consumer prices fell by 0.3% in 2015, largely as a result of the fall in energy prices.

The US dollar has suffered one of the sharpest drops in 20 years as the Federal Reserve signals a retreat from monetary tightening, igniting a powerful rally for commodities and easing a ferocious squeeze on dollar debtors in China and emerging markets. The closely-watched dollar index (DXY) has fallen 3pc this week to 96.44 and given up all its gains since late October. This has instant effects on the world’s inter-connected financial system, today more geared to the US exchange rate and Fed policy than at any time in modern history. David Bloom, from HSBC, said the blistering dollar rally of the past three years is largely over and may go into reverse as weak economic figures in the US force the Fed to pare back four rate rises loosely planned for this year. A more dovish Fed and a weaker dollar is a bitter-sweet turn for the Bank of Japan and the European Central Bank as they try to push down their currencies to stave off deflation. Their task has become even harder. The euro has rocketed by more than 3pc this week to $1.12 against the dollar. In trade-weighted terms the euro is 5pc higher than it was in March, when the ECB began quantitative easing, showing just how difficult it has become for authorities to drive down their exchange rates. Everybody is playing the same game. Global recession is now a certainty.  The only question is how soon? For the Europe,  it spells Armageddon.  Once the housing bubble bursts and those 2 million zero hours minimum wage service sector jobs disappear very rapidly, a Sterling crisis, bank bust and we have to beg for an IMF bailout will rapidly follow.

What a shock. Listening to the news this morning it was clear to me that Shell has done slightly better than expected and the market was happy. In fact Shell is up 60 this morning. Imagine my surprise when I read the "shock horror" headline, and this from a, so called, Business Reporter. Not having read the accounts I am assuming that the "exceptional items" include a great deal of write downs which of course do not affect the cash position. More information and less hyperbole would have been helpful.  Royal Dutch Shell has become the latest victim of the oil price rout after it confirmed 10,000 jobs would be axed amid its sharpest decline in income in 13 years. Pummelled by low crude prices, income for the year slumped 87pc to $1.9bn.  The oil major said earnings on a current cost of supplies basis, its preferred way of measuring profits, tumbled 56pc in the final three months of 2015 to $1.8bn, compared to $4.2bn in the previous year.  The torrid quarter took its toll on the Anglo-Dutch group, dragging its full-year profit from $19bn in 2014 to $3.8bn - an 80pc fall. Excluding exceptional items, profits for the year came in marginally below market expectations at $10.7bn. Earnings in Shell's upstream business - which seeks out and produces oil - were hindered by “the significant decline in oil and gas prices”, the group said.  Ben van Beurden, chief executive, said: “We are making substantial changes in the company reorganising our upstream, and reducing costs and capital investment, as we refocus Shell, and respond to lower oil prices”.

A senior Romanian government source, who also insisted on anonymity, added: “We are analysing this proposal. Changes like this have been considered a red line for us until now so we are debating what to do and how to react.” He said Romania would “not want to be the one blocking a compromise which would lead to Britain leaving the EU. But we have to analyse whether it passes our red line.”  Some commentators argued that eastern Europe should swallow welfare cuts for a greater good. “In the case of a Brexit, the EU would be weakened, economically but also politically towards Russia … and more focused on the euro, which would be of detriment to countries (such as Poland) that have not adopted the single currency,” Tomasz Bielecki argued in the liberal Polish daily Gazeta Wyborcza. “For that reason, the government … needs to be willing to compromise on the question of migrant workers. It is better to forego certain benefits than face Brexit.”... Poland’s president, Andrzej Duda, said Warsaw – a vocal opponent of any measures that might discriminate against its citizens working in Britain – broadly approved of measures to strengthen sovereignty and bolster EU members’ ability to stop legislation, but was looking carefully at the proposal to suspend in-work benefits for migrant workers.   “This is a preliminary deal; let us see how the negotiations unfold,” Duda told the TVP Info news channel. “But free movement of workers and services is a fundamental value of the EU. There is a clause saying that in the case of a sudden influx of wage migrants, some benefits could be curbed. We will see what the interpretation [of the clause] is.”..The European council president Donald Tusk’s plan, which must be accepted by all 28 EU member states, seeks to address Britain’s demand for reforms to stem immigration and boost British sovereignty. It includes welfare reforms that are controversial in several east European countries, including Poland, which have sizeable populations of migrant workers in the UK.  The Polish foreign minister, Witold Waszczykowski, told a press conference with his Hungarian counterpart on Wednesday that both countries aimed to present a joint statement on the UK reform package in Budapest on Monday.  While sentiment towards the proposal was generally positive, Waszczykowski said, and “we share the UK’s push to respect the will of sovereign countries more, we must not see any solutions that discriminate against some groups of people”. Up to 1.3 million Poles are thought to live in Britain.

The f*cking psychopaths running our economies are hellbent on leading us to war. We should have put the whole establishment against the wall in 08 when we still had some power. Now they will be putting us all up against the wall. As I said it will be a miracle if this decade doesn't end with a major conflict.  All of the financial world is hocus pocus and the digital age was the ultimate magic wand to send it in overdrive. It's all bullshit and we all know it.  Yet these financial wizards, these insincere quacks preach at the high altar of capitalism and we are forced to take their mass. Our politicians sit at the front row of this mass and nod their heads like obedient dogs.  Anybody who votes for the mainstream political parties is a vote for this corrupt Kabbala. Mainstream parties always belittle the fringe parties as incompetent nutjobs followed by the media who always paint them as unviable.  More importantly they the establishment always cynically point out that there is no point voting for a small party by stating they will have no impact on the stream of general opinion. We are all doomed by our feckless complacency...eat the shit of the 'celeb age'whilst we rob you of everything. The greatest freedom the liberals have won for us is the freedom to be ignorant of the reality which betrays us.

According to CNBC's Robert Frank, a Bank of England report shows that its quantitative easing policies had benefited mainly the wealthy, and that 40% of those gains went to the richest 5% of British households. Dhaval Joshi of BCA Research wrote that "QE cash ends up overwhelmingly in profits, thereby exacerbating already extreme income inequality and the consequent social tensions that arise from it". Anthony Randazzo of the Reason Foundation wrote that QE "is fundamentally a regressive redistribution program that has been boosting wealth for those already engaged in the financial sector or those who already own homes, but passing little along to the rest of the economy. It is a primary driver of income inequality". In May 2013, Federal Reserve Bank of Dallas President Richard Fisher said that cheap money has made rich people richer, but has not done quite as much for working Americans.  The majority of citizens lost a great deal since the financial crisis in 2008. Savage 'austerity' cuts, increase in VAT, (yet tax cuts for large corporations) has led to a devastating impact on public services, small businesses on our High Streets going bust, over a million people using food banks and an increase of suicides... I could go on.  The finance industry toxic financial products; price manipulations; market bubbles and just blatant fraud, is unsustainable and ordinary people should not continue to pay for this crime in the financial sector. This is not 'capitalism', this is not a 'free-market' and smaller business cannot compete.  If the bankers were prosecuted and went to jail for their crimes back in 2008, like they did in Iceland and the US reinstated the Glass–Steagall Act and we had the equivalent in the UK, the Markets would not be in the volatile state we constantly see. Savers would be more protected. Only robust effective regulation can stabilise the Markets.

Oops trying to concentrate on some thing else and make a balls up . Was going on to say the Banks and the establishment also knew that austerity wasn't the answer as the collapse in the 1930s proved this The top economist knew this and were saying so .Salmond, who is also an economist was saying so .We should have used the Billions thrown at the banks to implement a strategy in getting the country working and investing in a host of projects . It was an ideological decision rather than one based on sound financial judgment,  and certainly the working class man /woman weren't taken into consideration at all. We could have become the manufacturing country which we once were instead of a third rate Service industry, and economy with a race to the bottom with regards to low wages.

We are possibly on the cusp of another financial downturn although the Banks are still carrying on as before and it seems they never learned any lessons at all from the crash .

It really wasn't rocket science, just greedy bankers and their right wing friends in the Tory party and press who decided the pathway and the stupid Labour party had neither the guts or sense to fight against it. And it looks like Osborne's policies are still failing, although we might be creating jobs it's the caliber of job and the wages that are obviously keeping the country back. AS mentioned before with the 2 million jobs created one would expect a thriving economy, and it certainly doesn't seem that way to the majority of people, and many economist were forecasting this and now the OECD are just catching up.