However, some impediments do exist
including slower global economic growth, a recession in Europe, and fiscal and political uncertainty in the U.S. Taking these facts and trends together, we are bullish on the prospect of improving economic performance in 2012 from 2011.
The underlying determinants for these declines are related to the
global supply and demand for funds,
including shifting demographics,
slower trend productivity and
economic growth, emerging markets seeking large reserves of safe assets, and a more general global savings glut (Council of Economic Advisers 2015, International Monetary Fund 2014, Rachel and Smith 2015, Caballero, Farhi, and Gourincha
economic growth, emerging markets seeking large reserves of safe assets, and a more general
global savings glut (Council of
Economic Advisers 2015, International Monetary Fund 2014, Rachel and Smith 2015, Caballero, Farhi, and Gourincha
Economic Advisers 2015, International Monetary Fund 2014, Rachel and Smith 2015, Caballero, Farhi, and Gourinchas 2016).
Even if China's debt and real estate bubbles don't pop, resulting in a
global recession,
slowing economic growth from China could have a detrimental effect on long - term energy prices and result in prolonged weakness in the entire energy sector,
including oil services suppliers such as U.S. Silica.