Today, trade officials are gathering in Geneva, Switzerland to try and finish what many people have called the single most important step towards ending global poverty.

It is the Doha round of trade negotiations, which have still not been completed 9 years after they began.

While a lot of attention is paid to economically-troubled countries like Greece, Ireland and even America, little mention is made of the countries that are doing well.

Such nations are quietly purring along with reasonable growth rates, low unemployment and healthy governments.

The world’s biggest economy is in deep trouble. The government and Federal Reserve have effectively tried everything they can to fix the problem but have failed.

That problem is weak consumer demand, which has been caused by the demise of America’s middle class.

Now it seems the question is not whether the American economy will go back into recession, but whether it will be a recession or a depression.

The World Trade Organisation (WTO) is the mother ship of global trade. It’s the only port of call for 153 member countries to settle trade disputes and collectively negotiate agreements.

Former WTO Director-General Mike Moore described the organisation as a convoy of boats that are continually docked together: “we are all dependent on each other and we must all advance together.”

As the world economy stumbles along, there appears to be only one hope left in avoiding a second recession.

That is a series of law changes being made in China to encourage its people to start spending more.

The Chinese people currently save on average 25% of their income. But if they can start spending more, it will create millions of jobs in China, and millions of jobs elsewhere.

As governments get increasingly nervous about the state of their economies, some are turning to their currencies for help.

The idea is that by decreasing the value of its currency, a government can boost export sales in the short term and stimulate economic growth.

However, as the heads of both the World Bank and IMF warned last week, when countries start trying to ‘out-devalue’ each other to get a competitive edge, all that ends up happening is further pain for little gain.

While many European governments are desperately trying to balance much-needed spending cuts with fragile economic growth, the German economic engine is thriving.

This success is mainly due to a finely-tuned employment culture, financial self-discipline and heavy Chinese demand for German machinery.

Germany’s return to form

On Thursday, the Irish government revealed that it would need €50 billion to bail out its struggling banks: €30 billion for Anglo Irish Bank and the rest for Allied Irish Bank and Irish Nationwide.

The stated reason for the taxpayer bailout is that without it, no one will lend to Ireland’s government or banks anymore due to a loss of confidence.

But one Irish economist believes this is simply not true. And that because of the government’s decision, Irish taxpayers will be spending the next few decades enslaved to debt.

Europe’s economic problems from April have resurfaced this week, in what seems to be a constant swing of negative momentum between themselves and America.

Yesterday Spain had a massive 24-hour strike, Greece is battling with truck drivers, Portugal’s borrowing rates are reaching record highs, and Ireland’s government is under major stress thanks to a single bank.

Here is a snapshot of the PIGS’s economic situation.

Ireland

The same problem that triggered the world’s economic decline in 2008 is again threatening to derail the global economy.

That problem is the American housing market, and in so far as helping it, the US government is just about out of moves.

In fact, some experts believe the government should just let it crash and get it over with. But the domino effect that might cause around the world is frightening.