From NEWSMAX:
A new report by the International Monetary Fund paints a brutally grim picture of the global economic outlook, warning that continued European belt-tightening combined with possible deficit-cutting in the United States could lead to a global double-dip recession.
Ambrose Evans-Pritchard, international business editor of the Daily Telegraph newspaper, wrote that the report suggests Western economies are stuck in a “near depression.”
In the near term, the report suggested, nations seeking to stabilize their economies by cutting their budgets will only make the global economy worse…
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Related to it, in Japan (the 2nd largest economy until China overtook them this year), they have cut the interest rate to zero in order to spur spending and prevent the deflation that can lead to a depression. See http://www.thisismoney.co.uk/markets/article.html?in_article_id=515912&in_page_id=3. The interest rate had been .25% in July and that did not work, so who knows if this will.