global economy

The International Monetary Fund has strongly criticized the United States for its loose budget deficit policy that may result in another global economic crisis. The IMF said that the US lacks a “credible strategy” to stabilize its mounting public debt.

The US was the only advanced economy to be increasing its underlying budget deficit in 2011 at a time when its economy was growing fast enough to reduce borrowing, said the fund.

According to a forecast made by Nouriel Roubini, chairman at Roubini Global Economics, the world economy will suffer a "couple of financial crises over the next 10 years" as financial reforms are not going in the right direction and not enough is being done.

"Nothing has changed fundamentally. When the regulatory reform was passed by the U.S. Congress, my view is too little, too late," Roubini told CNBC Monday on the sidelines of the World Capital Markets Symposium in Kuala Lumpur, Malaysia.

Friday in Tokyo, bullion hovered $1,200 an ounce but trading was suppressed as investors looked for catalysts to break out of recent narrow ranges.

Spot gold was $1,208.80 per ounce as of 2:53 GMT, compared to the late New York level of $1,207.75. At current levels, gold was set for a weekly fall of 0.2%. Gold rallied to an all-time high of $1,264.90 an ounce on June 21.

Gold has been stuck in a $100 range between $1,165 and $1,265 since the start of May, with the band narrowing further to $30, between $1,190 and $1,220, over the past two weeks.

According to the BofA Merrill Lynch Survey of Fund Managers for July, investors’ forecast over the global economy and corporate earnings turned bearish.

According to a recent report by Gartner sales of PCs across the globe have increased almost 1/5 over the previous year from 308.3 million to 376.6 million.

When it comes to revenue the market saw a 12% growth to $245.4 billion explained by the stable demand among consumers in the developed nations who treat computers as a necessity.

The Financial Crisis Inquiry Commission, that was created last year to examine the causes of the crisis in the nature of the 9/11 panel that examined intelligence failures preceding the terrorist attacks of Sept. 11, 2001, starts its first hearings with current and former executives of Citigroup to be probed there.