In 2013, the US will not only face direct effects of a fiscal drag, but also its indirect effect on private spending
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Without a much easier monetary policy and a less front-loaded mode of fiscal austerity, the eurozone crisis will deepen.
There are at least four downside risks likely to materialise this year that will undermine growth, investor confidence.
Despite favourable macroeconomic indicators, US economic growth will remain weak and below trend throughout 2012.
A stagnant US, a volatile eurozone, and a slowly recovering Japan promise to make 2012 a bumpy ride.
Choosing austerity measures means a deeper recession in the short term, a blow the periphery may not be able to handle.
An economic model that does not address inequality will at some point face a decline of legitimacy.
The most viable option to restore competitiveness and growth is for peripheral countries to exit the eurozone.
The recent credit rating downgrade and Eurozone debt crises are slowly showing signs of The Great Depression 2.0.
The eurozone crisis is reaching climax. Greece is insolvent while Portugal, Ireland, Spain and Italy are struggling.