Directly out of the OPEC Monthly Oil Market Report

The mild boost to US growth from the current fiscal stimulus package may be short-lived as the housing sector recession drags on and labour markets weaken further, dampening consumer spending growth. Economic recovery is seen to take hold only in the second half of 2009. Overall, US growth next year at 1.6% is still well below potential. Euro-zone growth will show a more marked slowdown next year as tighter money and slowing export growth take their toll. Similarly growth in Japan is expected to remain lacklustre in 2009.

Emerging market economies remain resilient, but the need to tackle rising inflationary pressures, fed by escalating food and
commodity prices as well as strong domestic demand and credit growth, has led to tighter monetary policies. China’s economic growth is not expected to decelerate significantly until the latter part of 2008, but the rate of expansion may slow to 9.2% in 2009, 1.5% below the average for 2003-2007. Above-target inflation may lead to further monetary tightening after the Olympics, at a time when economic activity is expected to moderate.

There is some concern about India’s economic growth in
2009 as it faces not only the highest inflation levels in a decade despite several attempts at monetary tightening but also a worsening current account deficit due to an escalating import bill.
Latin America will also see a slowdown in growth in 2009 from the strong rates expected this year due to higher interest rates.

"Ponzi" Schemes

It has been in the news day in, and day out, but what exactly is a ponzi scheme?

According to the (SEC) Securities Exchange Committee....

Ponzi schemes are a type of illegal pyramid scheme named for Charles Ponzi, who duped thousands of New England residents into investing in a postage stamp speculation scheme back in the 1920s. Ponzi thought he could take advantage of differences between U.S. and foreign currencies used to buy and sell international mail coupons. Ponzi told investors that he could provide a 40% return in just 90 days compared with 5% for bank savings accounts. Ponzi was deluged with funds from investors, taking in $1 million during one three-hour period—and this was 1921! Though a few early investors were paid off to make the scheme look legitimate, an investigation found that Ponzi had only purchased about $30 worth of the international mail coupons.

Decades later, the Ponzi scheme continues to work on the "rob-Peter-to-pay-Paul" principle, as money from new investors is used to pay off earlier investors until the whole scheme collapses. For more information, please read pyramid schemes in our Fast Answers databank.

http://www.sec.gov/answers/ponzi.htm