Discover the World News Forecast . . . FIRST in Foresight Journalism

41st World Economic Forum meets at Davos

January 26, 2011 - SWITZERLAND

Some 2500 leaders from economic, scientific and government circles in 88 countries, including heads of state, meet at the Swiss mountain resort town, Davos, for the 41st annual World Economic Forum. They plan to explore ways to mend global economic systems. Developments that could influence the recommendations include the decline of the European, Japanese and United States currencies, and China's decision to allow the yuan to float more freely.According to the Sydney Morning Herald, Australian and Canadian dollars are joining the basket of elite currencies for central bankers seeking alternatives to deteriorating government credit quality in Europe, the United States and Japan. China pledged on 19 Jun to make the yuan more flexible, while ruling out a one-time revaluation of the currency been pegged at 6.83 yuan per dollar for two years.

Some 2500 leaders from economic, scientific and government circles in 88 countries, including heads of state, meet at the Swiss mountain resort town, Davos, for the 41st annual World Economic Forum. They plan to explore ways to mend global economic systems. Developments that could influence the recommendations include the decline of the European, Japanese and United States currencies, and China's decision to allow the yuan to float more freely. According to the Sydney Morning Herald, Australian and Canadian dollars are joining the basket of elite currencies for central bankers seeking alternatives to deteriorating government credit quality in Europe, the United States and Japan. China pledged on 19 Jun to make the yuan more flexible, while ruling out a one-time revaluation of the currency been pegged at 6.83 yuan per dollar for two years. A New York Times article points out that the Chinese central bank set a key rate for the renminbi in June at a level that appeared designed to signal that Beijing is engineering only a very gradual appreciation of the Chinese currency against the US dollar. The European Union was forced to commit almost US $1 trillion to prevent a sovereign default by Greece. Japan's debt is approaching 205 percent of gross domestic product, the highest among the 31 members of the Organization for Economic Cooperation and Development, according to the OECD; and the US White House and Congressional Office said on May 26 that the US budget deficit is forecast to reach a record US $1.6 trillion this fiscal year, and that the total debt will reach 60 percent of GDP by the end of the year, the highest level since 1952. For more than four decades, the Annual Meeting has provided leaders from industry, government, academia, civil society and the media with an unrivalled platform to shape the global agenda and catalyze solutions at the start of each year, according to the WEF. NEW DATE

World Economic Forum web

Central Banks Show Euro Losing Reserve Status as Loonie Gains (Bloomberg 22 Jun 2010)

Beijing Keeps a Tight Rein on Currency's Rise (NYT 23 Jun 2010)

Date written/update: 2011-01-26