What

is world economy or global economy?

The world economy, or global economy, generally refers to the economy, which is based on economies of all of the world's countries, national economies. Also global economy can be seen as the economy of global society and national economies as economies of local societies, making the global one. It can be evaluated in various kind of ways. For instance, depending on the model used, the valuation that is arrived at can be represented in a certain currency, such as 2006 US dollars or 2005 euros.

It is common to limit questions of the world economy exclusively to human economic activity, and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research or government cooperation makes establishing figures difficult. Typical examples are illegal drugs and other black market goods, which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind.

In 2011, the largest economies in the world with more than $2 trillion, 1.25 trillion by nominal GDP are the United States, China, Japan, Germany, France, the United Kingdom, Brazil, and Italy.

` The

events taking place in the world right now have lots of folks anxious, nervous, lets discuss them.?

Japan, the worlds third largest economy has just suffered a tremendous blow, the total fallout of which is yet to be determined. The 9.0 earthquake has destroyed or damaged much of the infrastructure in parts of the country. The tsunami has devastated entire regions, while we have all watched in horror. The Fukushima nuclear power plant disaster is still unfolding and may leave that entire part of the country uninhabitable due to radiation entering the environment, soil, and water supply. Japan will pay many hundreds of billions of dollars (10 s of Trillions of yen), if not much more, to rebuild. They may have to sell some of their U.S. Treasuries, and limit or eliminate new purchases of U.S. Treasuries.

The situation in Libya, although hopeful for democracy, is adding more uncertainty to the entire Middle East region following the recent uprising in Egypt and the prospect of trouble in Saudi Arabia. With oil at 100 dollars a barrel, every increase of a single dollar has a major impact on the costs of nearly everything that we consume, as the increases are passed down to the consumer and are magnified over layers of manufacture and distribution.

The Fed continues to print money and to fund the U.S. government with their monthly 100 to 200 billion dollar deficit spending. The U.S. dollar is looking worse and worse as an investment, and other countries are working their way around the dollar and eliminating it from their transactions. For example, China now imports a huge amount of oil from Russia, and they do not exchange in dollars. Buying U.S. debt (Treasuries) is becoming less and less attractive for investors

The derivatives time-bomb still exists (hundreds of Trillions of dollars), and is as bad or worse than before 2008, according to many. The too-big-to-fail institutions have received free money from the Fed, even internationally, and continue to make bad bets. The U.S. government has now absorbed, or taken upon their books with guarantees, much of the bad assets from the toobig-to-fail institutions.

Lots of opinion out there suggests that the run-up in the stock market since 2008 is directly due to the Feds injection of money into the system, and not much of anything to do with personal investment money from you and I. Given the apparent fragility of this house-of-cards, some believe that a stock market crash is inevitable.

The Risk occurred in world economy due to Global carnage

The point is, it feels like things are quite shaky and definitely uncertain in the world right now. Given the speed at which information moves today, and the speed at which financial systems transact these days, it may not take much to tip things over right now.

It is a good idea for many reasons, to be prepared and take preemptive action with your finances and overall preparedness plans when you think that things arent going well out there. It certainly cant hurt. A good thing may be to hold some cash as reserve (and not all of it in a bank). Have a look at your own preparedness plans.

THANK YOU