The International Monetary Fund (IMF) has lowered its global economic growth forecast. The Fund lowered its growth estimates by 0.2 percent from its forecast last July. Its expectation is that the global economy will only grow by 2.9% this year. This estimate may prove to be overly optimistic if the US does not address its budgetary and debt issues. Indeed, the governance issues in the US may sharply lower global economic growth if it seems to the rest of the world that the US is no longer reliable. We are beginning to get some indications that global investors are becoming apprehensive, and as the deadline of 17 October gets closer those fears will only get worse.
The loss of nearly 300 lives near the Italian island of Lampedusa is testimony to how desperate many people are to leave their home country in search of a better life in Europe. And the increasingly nasty political rhetoric against immigrants is testimony to the growing nationalism in Europe, and a desire to protect national economies from competition in the labor market. The situation, however, is different if you are a rich immigrant. Many European states will welcome people from other countries if they have the means to buy a house. The inconsistency is telling.
As the whole world watches the showdown in Washington, DC., it is useful to know who the players are. One person who is often overlooked in this deadlock is Harry Reid, the Senate Majority Leader. Apparently, he is the real driver behind the White House’s adamant stance against negotiations. It also appears as if Reid loves a fight. We should watch him more carefully as the shutdown continues.
World Politics News 
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