The world economy can’t handle even one US rate hike, strategist Sri-Kumar says

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Even one small interest rate increase by the Fed could have a sweeping impact on U.S. and world economies, Komal Sri-Kumar told CNBC on Monday.

“I think they are going to hike” on March 15, Sri-Kumar said on “Squawk Box,” echoing a theory shared by many analysts. “But that is going to prompt capital outflows from the euro zone, especially with the political risk. It is going to increase the capital outflow from China, and the U.S. economy will feel the impact.”

These moves would strengthen the dollar against other currencies, putting downward pressure on the euro, said Sri-Kumar, president of Sri-Kumar Global Strategies. Continue reading

Europe on brink of deflating, needs stimulus

The European economy is “on the brink of deflating” and urgently needs more stimulus, particularly from the continent’s largest economy Germany, former U.S Treasury secretary Larry Summers said on Tuesday.

Summers also said central bank bond buying, known as quantitative easing, would be welcome and certainly better than no action at all.

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Obama’s giveaway: Oil-rich islands to Russia

The Obama administration, despite the nation’s economic woes, effectively killed the job-producing Keystone Pipeline last month. The Arab Spring is turning the oil production of Libya and other Arab nations over to the Muslim Brotherhood. Iraq is distancing itself from the U.S. And everyone recognizes that Iran, whose crude supplies are critical to the European economy, will do anything it can to frustrate America’s strategic interests. In the face of all of this, Obama insists on cutting back U.S. oil potential with outrageous restrictions.

Part of Obama’s apparent war against U.S. energy independence includes a foreign-aid program that directly threatens my state’s sovereign territory. Obama’s State Department is giving away seven strategic, resource-laden Alaskan islands to the Russians. Yes, to the Putin regime in the Kremlin.

Full article: Obama’s giveaway: Oil-rich islands to Russia (WND)