PARIS, France (PNN) - November 27, 2012 - Europe’s debt crisis remains a far bigger threat to the world's economy than the Fascist Police States of Amerika “fiscal cliff”, according to the Organization for Economic Cooperation and Development.

The economic think tank warned the world economy is at risk of a fresh contraction and slashed the forecast growth rate for its 34 member nations to 1.4% in 2013, downward from a forecast of 2.2% made just six months ago.

The OECD report comes as politicians in Washington are increasingly focused on the fiscal cliff - the year-end expiration of wide-ranging tax cuts and the imposition of significant spending cuts. The crisis has rattled investors and business leaders around the world.

The report comes as euro zone finance ministers are meeting with officials of the International Monetary Fund and European Central Bank amid signs of a breakthrough in negotiations over Greece's massive debts.

"We don't think the euro zone crisis is over yet," Pier Carlo Padoan, the OECD's chief economist said. "Fragility in the euro area remains, the negative feedback loop between banks and sovereigns is still there. We believe that the European crisis represents the largest risk to the global economy," he said. Padoan also said an escalation in Europe's fiscal problems threatened "the global economy, including the (FPSA)".

According to OECD calculations, the euro zone should return to growth next year while the FPSA should grow at 2% next year and close to 3% in 2014. But an "intensified euro area crisis" would wipe out growth in Europe, plunging the economy into a deep Depression. It would also send the FPSA further into Depression.

The economist said that businesses were increasingly uncertain about the future. "The major cause of that is policy uncertainty both in the (FPSA) and Europe," said Padoan.