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...what most Japanese already suspect: its current leaders are looking increasingly unprepared to deal with what may be the country's greatest challenge since the end of World War II. Japan's economy, the world's second largest, is contracting at the fastest rate among all developed nations. GDP growth in the last quarter shrank at an alarming annualized rate of 12.7%, Japan's worst showing since the 1974 oil shock. But instead of taking vigorous steps to counteract a worsening recession, Prime Minister Taro Aso is lurching from one embarrassing gaffe to the next, and seems in imminent danger...

Author: /time Magazine | Title: Crunch Time | 2/19/2009 | See Source »

...deficit to 10% of gross domestic product, the highest figure since World War II. But assuming the economy has begun to turn around, the two-year spending splurge would be followed by a steady return to fiscal sanity: Obama wanted to bring the deficit down to 3% of GDP--still a whopping $546 billion...

Author: /time Magazine | Title: After the Stimulus, Can Obama Tame the Deficit? | 2/19/2009 | See Source »

...years selling oil as prices soared. Iraq has roughly $30 billion in surpluses from previous years. That has allowed the country to maintain minimum standards of services and governance despite depression-scale unemployment (no reliable data are available, but some experts estimate unemployment may be over 20%). Iraq's GDP is growing steadily despite the global financial crisis. Last year, GDP grew in Iraq an estimated 7% to 9%. This year, GDP is projected to rise 5% to 7%. (See pictures of life returning to Iraq's streets...

Author: /time Magazine | Title: Iraq a Haven from the Global Financial Crisis — for Now | 2/18/2009 | See Source »

...Disagreeing with Roubini has not been rewarding. He predicted the current economic collapse with precision long before most economists. His forecasts for the next year or so seem reasonable and are widely viewed as a good road map for what is likely to be ahead for GDP and employment. However, he may not be right with his estimate that total banks write-offs due to toxic financial instruments sold by U.S. will be about $3.3 trillion worldwide. That is well above projections by most economists and the IMF. Nationalization of U.S. banks would cause hundreds of billions of dollars...

Author: /time Magazine | Title: The Case for Nationalizing the Entire Economy | 2/16/2009 | See Source »

...survive politically at home - if oil prices don't rebound and the economy continues to slide. "The futures markets seem to think oil prices will rise soon enough that Chávez won't have to dip into his foreign reserves, which are about 25% of Venezuela's GDP," says Mark Weisbrot, head of the Center for Economic Policy and Research in Washington. "So I don't think Chávez will have too big a problem getting through the crisis." But other economists say Chávez won't be able to sustain the social largesse at home...

Author: /time Magazine | Title: What Chávez Win Means for Latin American Democracy | 2/16/2009 | See Source »

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