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IMF warns global economic slowdown entering ‘dangerous new phase’ View Photo Gallery — The debt crisis in Europe is reverberating around the world.
An international team has decided it will return to Greece next week in hopes of reaching agreement on emergency loans needed to keep the country solvent and restore confidence in the financial health of the 17-nation euro zone. Two days of talks among representatives from Greece, the European Union and the International Monetary Fund concluded Tuesday after registering “good progress,” the IMF said in a statement. Negotiations have centered on the budget measures Greece will take to ensure that it reduces government deficits as much as officials have promised.
Comment from Peter Burgess The problem with the capitalist market economy is, however, deeper than incompetent bankers. There is a singular focus on profit which may be better than communism as an economic system, but it is inadequate. Profit and associated GDP growth will not sort out the problems facing the world. Business has invested heavily in advertising to create demand for products we do not need, but has ignored completely the world's needs that cry out for investment. There is value adding in getting people out of abject poverty, but limited profit. The market economy needs reform so that the value dimension is included in the conversation. I call this the Value Market Economy and it has the potential to change the profile of resource allocation in a very important way @truevaluemetric www.truevaluemetrics.org Central bank leaders from around the world are gathering in Washington this week at the IMF-World Bank meetings. Gallery New IMF chief Christine Lagarde is facing a crucial test of her leadership as the situation in Europe deteriorates.The crisis over government debt and the weak financial system in Europe, political paralysis over public spending in the United States, and other problems “are feeding negatively on each other,” Lagarde said in a speech in Washington ahead of the IMF annual meetings. The fund said it expected technical talks with Greece “to be completed soon,” with a full IMF mission to return to Athens early next week, presumably clearing the way for Greece to receive a new round of $11 billion in emergency loans next month. The statement of progress came hours after the IMF warned that the global economy was in a “dangerous new phase” of slowing growth and eroding confidence — partly because of Europe’s inability to solve a set of problems arising from high public debt, a weakened financial system and slow economic growth. Greece is a test case for whether the euro zone can meet the challenge. Nearly two years of efforts to address the country’s problems have run into repeated difficulties. These have included inaccurate IMF forecasts, slow follow-through by Greek officials to make promised changes and the inability of European leaders to convince global markets that euro-zone governments will pay their obligations. The IMF’s latest forecast shows the Greek economy contracting by 5 percent this year, with the recession continuing through the end of 2012. That’s a significant change from July, when the agency projected a downturn of only 3.75 percent and said the Greek economy would expand slightly next year. Greece’s plans for cutting its government deficit were based on these overly optimistic projections. A default by Greece could undermine confidence in Europe as a whole. This could drive up the borrowing costs of other countries, such as Italy and Spain, amid mounting risks of other defaults on the continent. In its semiannual World Economic Outlook, the IMF said concerns about a possible Greek default are already affecting the world economy. Coupled with the economic slowdown in the United States and the impact of the Japanese earthquake, Europe’s debt crisis is putting the global recovery at risk, the IMF said. “Global activity has weakened and become more uneven; confidence has fallen sharply recently; and downside risks are growing,” the fund said. At a press conference, IMF economic counselor Olivier Blanchard issued what he referred to as a “call to arms” for European governments in particular to shore up their banks and use stronger measures to secure the finances of highly indebted countries. The IMF’s report said that if European banks begin acknowledging possible losses on their holdings of Greek and other government bonds, it could tip the world into a new recession. 'We can’t assume we have another three months or six months or a year,' he said. Underscoring the region’s difficulties, Standard & Poor’s downgraded Italy’s credit standing this week, saying that slow growth and weak political leadership had shaken confidence in the country. The downgrade is one in a series the rating agency has issued to governments that have large amounts of outstanding debt, including the United States. Italy’s annual government deficit is not as bad as that of other euro-zone countries. But the country has a massive amount of debt outstanding, and its economy is among the worst-performing in the world. The move by S&P could push up Italian borrowing costs that have already been rising. Italy’s size makes its fate critical to the debate over the euro’s future. The country is considered too big for the type of bailout being used to prop up Greece, and a default on its bonds would be ruinous to major German and French banks that have tens of billions of dollars invested in Italy. The IMF’s projections show the world economy growing by 4 percent this year and next, down from earlier forecasts of 4.3 percent for 2011 and 4.5 percent for 2012. Growth in the developed world is expected to be 1.6 percent this year and 1.9 percent in 2012, with the United States and Europe growing at an even slower pace. U.S. growth is projected at 1.5 percent for this year and 1.8 percent for 2012, while the 17-nation euro zone is projected to grow 1.6 percent in 2011 and a moribund 1.1 percent in 2012. Growth in the developing world is expected to remain strong, with China growing 9.5 percent this year and 9 percent in 2012.
/////////////////////////////// Your Comments On: IMF warns global economic slowdown entering ‘dangerous new phase’ By Howard Schneider, Published: September 20
sosueme1 I see the value of gold is still reported in dollars and cents...perhaps when we see that value reported as gallons of gasoline, bushels of wheat or hours of slave Chinese labor, then we can claim to see light at the end of the tunnel. Today 9/21/2011 12:48:21 PM EDTRecommendReplyReport JJosephP Can the U.S. take action to increase growth over the next two years and beat the newly lowered expectations, or will the U.S. still manage to fall below the new expectations? http://www.benzinga.com/news/11/09/1930750/imf-say... 9/20/2011 4:06:30 PM EDTRecommendReplyReport diamond2 It will have to get worse before the revolution. The comment earlier on a 'Terrorist Threat' is probable. After all, Hitler used in in 1933 with the burning of the Reichstag and the accusation that the Poles did it. My fear is that Fascism will rear it's sedictive head in this country. The 'White Knight' of Fascism will ride into the picture. 9/20/2011 1:33:09 PM EDTRecommendReplyReport viejo70 If you stop the Congress from raiding the Social Security funds and make them personnaly responsible for the theft, Social Security will be fine!!!!! 9/20/2011 1:32:35 PM EDTRecommendReplyReport diamond2 For the last 30 years I might add. 9/20/2011 1:33:46 PM EDTRecommendReport DFelice7797 nobody wants to mention the last sentence of this article? Entitlement Reform. If the US government were to operate on 'zero based budgeting' we would balance the budget immediately. People talk about the $14.7 trillion dollar debt like THAT is a lot (It is), but that has nothing on the $50 trillion that is currently guaranteed in medicare, medicaid, and social security. The US is fiscally irresponsible, if the US government were a private corporation, they would be bankrupt before they even filled out their corporate charter. However, if we switched to a zero-based budget, the federal government could only budget the amount of money to each program that it has based on revenues. Previous year's budgets are irrelevent. On this budgeting system, it quickly becomes apparent what we can and can't afford, and it also makes the government figure out what is really important, because you simply wont be able to afford everything based solely on what you will have to spend from revenues (no borrowing). If spending does not change, in the near future, the US government won't be able to do anything else but pay interest on the federal debt and maybe some entitlement benefits. It won't have money left for anything else: infrastructure, national defense, education, etc. 9/20/2011 1:28:34 PM EDTRecommendReplyReport diamond2 -0- based budgeting means that the Defense Department would have to justify every penny and the oil subsidies would have to be justified. Fat chance that will happen. 9/20/2011 1:35:10 PM EDTRecommendReport KJR1 In order to dig out, you have to give the tools to the one who actualy do the digging; and digging means spending, and the bulk of the spending in ANY developed economy is ALWAYS done by the average consumer. People spend $, businesses horde it. We've just witnessed first -hand what business does with large cash injections. They keep it. The truth is there is only one way to get rich in capitalist system and that is collect as much $ as you can while spending the least amount possible. The fantasy that giving businesses $ will create jobs is biggest load of B.S. ever to. Creating jobs requires spending, the very thing that businesses hate to do. Businesses will NEVER expand unless there are more people out there buying more of their stuff. Give the $ to the people, we know what to do with it. Economists who have been bought or hoodwinked by the GOP will tell you that in a recession, when consumer confidence is down, people will merely save any extra $ or use it to pay down debt, thus the economy will not experience the intended stimulus. But if banks have stronger ledgers due to higher savings balances and lower credit balances then they are in a better position to loan the real $ money businesses need to grow. Instead of giving the $ directly to businesses, why not filter it through the people first so that they can more directly benifit from it, then let the busunesses have the leftovers; instead of the other way 'round. 9/20/2011 1:14:46 PM EDTRecommendReplyReport quapawsix So if the world goes bankrupt just what does the IMF think is going to do about if we can't pay, repossess your country? That will be interesting to watch. 9/20/2011 12:30:21 PM EDTRecommendRecommended by 1 readerReplyReport Desertdiva1 South Korea just suspended trading on seven of their banks -- Jeil Savings Bank, Jeil 2 Savings Bank, Prime Mutual Savings Bank, Daeyeong Savings Bank, Ace Mutual Savings Bank, Parangsae Savings Bank and Tomato Savings Bank -- are suspended for six months starting at noon on Sunday. http://english.yonhapnews.co.kr/business/2011/09/1... 9/20/2011 12:15:47 PM EDTRecommendReplyReport robgomez19841 I know this is going to bring the ire of most of you, but this is actually true: In the past 100 years, the only tool the working class had to keep the elite and the banksters at bay was the so-called socialist movement. People were in the typical two party system here or in any of the different flavors of 'socialist' movements. Today we have only the two parties. Those who agree that the two parties represent the same elite can' t find ANY other alternative to coalesce and present a unified front. The 'socialist' movement have being decimated and assassinated by the lamestreammedia. That's why today we are powerless in front of this attack by the banksters. The working class is divided. You can't fight the banksters without an organized movement that can bring people together, even if there remains differences in other issues. I saw that last Saturday when I went to the so-called Day of Outrage, or 'Take Wall Street' manifestation. I have never in my life being to a manifestation where those who attend to protest ONE issue are insulting and attacking each other over election candidates and class issues. It was appalling. The Tpartiers vs the hardcore communists, and those in-between looking in disbelief. That's why there were only a few hundred people there. It's not that the majority of the citizens are not angry at the banksters and wall street. It's simply that there is no place to channel that anger in an organized fashion. We have only the capitalists' instruments, their philosophy a la Ann Rand. It's all cut-throat capitalism. Pure 'greed is good' and a deformed individualism that means you have a right to step over the other to make it to the top. I don't know, I don't see an exit to our current political-financial problems. I mean, a solution for the majority of the people, for the (gulp!) self-hating working class. 9/20/2011 11:47:19 AM EDTRecommendReplyReport Awake There is no solution under the current system. The system will have to change. It is time to read Marx again, or for the first time, and see what he says about the capitalist system cannibalizing itself. The reason we keep bailing out the banks is that they have failed to deliver the necessary service to the countries and people who they are so eager to fleece. The current system does not work and is itself a 'Ponzi Scheme' based on interest rates that destroy the small borrower to benefit the endless need for greed of the coddled few. It is a class war after all. 9/20/2011 11:54:25 AM EDTRecommendRecommended by 1 readerReport robgomez19841 I agree. Marx even said that 'communism' is not possible until the whole world is capitalist, in the sense of all the world ruled by one capitalist order. We are going that way, the NWO is just that. I guess things have to get terribly worse before we see the fighting here. I nor you will see a better world. 9/20/2011 11:57:32 AM EDTRecommendRecommended by 2 readersReport Awake There must be a fundamental flaw in the model. The idea that banks need constant reassurance along with their gigantic rates of usury and their gambling earnings is wrecking the world economy. Perhaps it's time to nationalize the banks and other industries so that they work for people instead of filthy rich 'investors' and so-called 'job creators'. The profit model is nearing the end of its life. 9/20/2011 11:46:19 AM EDTRecommendReplyReport RandomAnon If things are becoming uneven, someone will be playing the spread. 9/20/2011 11:35:17 AM EDTRecommendRecommended by 1 readerReplyReport robgomez19841 I don't know you, people, but I'm really fed up with every day news filled with death, assassinations, wars, police brutality, paying for armaments, civilians caught between warring sides, money to fight wars with 'unman' planes, finessing the art of killing for profit... And then flipping the page to find fat and skinny politicians lying to you and me, fighting to be the one who will give the final killing blow that will kill the American middle class and poor, posturing to win the elections by creating divisions they intent to not repair because divide and conquer is good politics, promoting fear and instability in our daily lives with 'news' that this or that country is about to collapse because we don't bail out the banks and the elite... Something is wrong in our daily lives, and I'm willing to bet my house that it has something to do with your fears to stand up and defend yourselves from the elite and the government. 9/20/2011 11:24:14 AM EDTRecommendRecommended by 8 readersReplyReport Desertdiva1 Your theory is about to be tested. When the global economy falls it will take the American economy with it. When that happens the riots and violence will begin. It's going to get ugly very quickly and all those greedy politicians will be left to fend for themselves by their corporate masters. So I'll take your bet that the American people will indeed go after these corrupt politicians who sold us all out. 9/20/2011 11:45:03 AM EDTRecommendRecommended by 5 readersReport ticked Agreed and they are developing killing drones so they can take out insurrections as America is fast becoming a police state........... 9/20/2011 11:46:19 AM EDTRecommendRecommended by 2 readersReport 1 more (expand) GPorter2 We need to find trustworthy media sources (independent, not corporate), a 3rd and 4th choice in our politics, and regulated (with real oversight) financial markets. IF none of that works, then I'm all for Marx. 9/20/2011 1:03:55 PM EDTRecommendRecommended by 2 readersReport kucy1 I guess this means Bernake will be printing more play money! Keep driving down those dollars Ben! 9/20/2011 11:17:55 AM EDTRecommendRecommended by 3 readersReplyReport jdsolano As usual, the IMF vultures are missing the big picture. The real problem remains the same: the world economy is controlled by the same criminal cartel that caused the 2008 collapse. Yes, yes, I know, it's not politically correct to call 'financial institutions' -Goldman, Citi, Barclays, UBS, Societe Generale, etc- what they really are: criminal cartels. Well, they are the ones who control the flow of money AND DERIVATIVES around the world. They play casino with other peoples' money, and they ALWAYS WIN, no matter whether their customes win or lose. Currently, the problem is not Greece. The problem is that all those 'financial institutions' have been playing casino with Greek bonds. Some of them are buying and selling insurance against default; others are shorting Greece; some are betting that the European Central Bank will finally buy all those worthless papers -another bailout; others are shorting the ECB. Same thing for Spain, Italy, Portugal, Ireland, the UK, and.... yes... the US. Obama had the opportunity to completely overhaul the world's financial system, and kick the maffiosi out for good. But.... those maffiosi are his donors. So, he let Wall Street emerge unscathed from the financial crisis. Now, they are back. 9/20/2011 10:54:58 AM EDTRecommendRecommended by 7 readersReplyReport ticked I couldn't have said it better myself....but keep in mind the lying and criminal bush/cheney/tenet/rove/rumsfeld/rice/gramm/greenspan/berancke/paulsen/geithner and more got us into these messes with endless invasions of soverign countries based on lies and they are responsible for the enabling of the finacial crooks...... Both parties are to balme as they argue but DO NOTHING to end these senseless wars and re-regulate the fiancial systema nd reduce government at every level and change ineffective policy such as taxes, drugs, guns, energy, education, welfare, housing and as well the guardians are inept- sec/cftc/doj........ In 2012 throw out all incumbents as they all caused these problems and have done NOTHING to rectify them............and elect NO demos and NO repubs....... 9/20/2011 11:43:32 AM EDTRecommendRecommended by 4 readersReport labec It's all been predicted, is coming to now, and this country's response will be a false terrorist threat(?) 9/20/2011 10:31:30 AM EDTRecommendRecommended by 4 readersReplyReport More //////////////////////////////// //////////////////////////////// Your Comments On: IMF warns global economic slowdown entering ‘dangerous new phase’ By Howard Schneider, Published: September 20 Back inShare Email Tumblr Reddit Stumbleupon Digg Delicious Weigh In Discussion Policy About Discussions, Badges LOG OUT + SHARE THIS DEBATE Your washingtonpost.com MyPost ID, PeterBurgess, will be displayed with your comment. Limit 3000 characters (3000 characters remaining) Post Top Comments (0)All Comments (29) Newest first Oldest first Most Recommended first Live Updates On sosueme1 I see the value of gold is still reported in dollars and cents...perhaps when we see that value reported as gallons of gasoline, bushels of wheat or hours of slave Chinese labor, then we can claim to see light at the end of the tunnel. Today 9/21/2011 12:48:21 PM EDTRecommendReplyReport JJosephP Can the U.S. take action to increase growth over the next two years and beat the newly lowered expectations, or will the U.S. still manage to fall below the new expectations? http://www.benzinga.com/news/11/09/1930750/imf-say... 9/20/2011 4:06:30 PM EDTRecommendReplyReport diamond2 It will have to get worse before the revolution. The comment earlier on a 'Terrorist Threat' is probable. After all, Hitler used in in 1933 with the burning of the Reichstag and the accusation that the Poles did it. My fear is that Fascism will rear it's sedictive head in this country. The 'White Knight' of Fascism will ride into the picture. 9/20/2011 1:33:09 PM EDTRecommendReplyReport viejo70 If you stop the Congress from raiding the Social Security funds and make them personnaly responsible for the theft, Social Security will be fine!!!!! 9/20/2011 1:32:35 PM EDTRecommendReplyReport diamond2 For the last 30 years I might add. 9/20/2011 1:33:46 PM EDTRecommendReport DFelice7797 nobody wants to mention the last sentence of this article? Entitlement Reform. If the US government were to operate on 'zero based budgeting' we would balance the budget immediately. People talk about the $14.7 trillion dollar debt like THAT is a lot (It is), but that has nothing on the $50 trillion that is currently guaranteed in medicare, medicaid, and social security. The US is fiscally irresponsible, if the US government were a private corporation, they would be bankrupt before they even filled out their corporate charter. However, if we switched to a zero-based budget, the federal government could only budget the amount of money to each program that it has based on revenues. Previous year's budgets are irrelevent. On this budgeting system, it quickly becomes apparent what we can and can't afford, and it also makes the government figure out what is really important, because you simply wont be able to afford everything based solely on what you will have to spend from revenues (no borrowing). If spending does not change, in the near future, the US government won't be able to do anything else but pay interest on the federal debt and maybe some entitlement benefits. It won't have money left for anything else: infrastructure, national defense, education, etc. 9/20/2011 1:28:34 PM EDTRecommendReplyReport diamond2 -0- based budgeting means that the Defense Department would have to justify every penny and the oil subsidies would have to be justified. Fat chance that will happen. 9/20/2011 1:35:10 PM EDTRecommendReport KJR1 In order to dig out, you have to give the tools to the one who actualy do the digging; and digging means spending, and the bulk of the spending in ANY developed economy is ALWAYS done by the average consumer. People spend $, businesses horde it. We've just witnessed first -hand what business does with large cash injections. They keep it. The truth is there is only one way to get rich in capitalist system and that is collect as much $ as you can while spending the least amount possible. The fantasy that giving businesses $ will create jobs is biggest load of B.S. ever to. Creating jobs requires spending, the very thing that businesses hate to do. Businesses will NEVER expand unless there are more people out there buying more of their stuff. Give the $ to the people, we know what to do with it. Economists who have been bought or hoodwinked by the GOP will tell you that in a recession, when consumer confidence is down, people will merely save any extra $ or use it to pay down debt, thus the economy will not experience the intended stimulus. But if banks have stronger ledgers due to higher savings balances and lower credit balances then they are in a better position to loan the real $ money businesses need to grow. Instead of giving the $ directly to businesses, why not filter it through the people first so that they can more directly benifit from it, then let the busunesses have the leftovers; instead of the other way 'round. 9/20/2011 1:14:46 PM EDTRecommendReplyReport quapawsix So if the world goes bankrupt just what does the IMF think is going to do about if we can't pay, repossess your country? That will be interesting to watch. 9/20/2011 12:30:21 PM EDTRecommendRecommended by 1 readerReplyReport Desertdiva1 South Korea just suspended trading on seven of their banks -- Jeil Savings Bank, Jeil 2 Savings Bank, Prime Mutual Savings Bank, Daeyeong Savings Bank, Ace Mutual Savings Bank, Parangsae Savings Bank and Tomato Savings Bank -- are suspended for six months starting at noon on Sunday. http://english.yonhapnews.co.kr/business/2011/09/1... 9/20/2011 12:15:47 PM EDTRecommendReplyReport robgomez19841 I know this is going to bring the ire of most of you, but this is actually true: In the past 100 years, the only tool the working class had to keep the elite and the banksters at bay was the so-called socialist movement. People were in the typical two party system here or in any of the different flavors of 'socialist' movements. Today we have only the two parties. Those who agree that the two parties represent the same elite can' t find ANY other alternative to coalesce and present a unified front. The 'socialist' movement have being decimated and assassinated by the lamestreammedia. That's why today we are powerless in front of this attack by the banksters. The working class is divided. You can't fight the banksters without an organized movement that can bring people together, even if there remains differences in other issues. I saw that last Saturday when I went to the so-called Day of Outrage, or 'Take Wall Street' manifestation. I have never in my life being to a manifestation where those who attend to protest ONE issue are insulting and attacking each other over election candidates and class issues. It was appalling. The Tpartiers vs the hardcore communists, and those in-between looking in disbelief. That's why there were only a few hundred people there. It's not that the majority of the citizens are not angry at the banksters and wall street. It's simply that there is no place to channel that anger in an organized fashion. We have only the capitalists' instruments, their philosophy a la Ann Rand. It's all cut-throat capitalism. Pure 'greed is good' and a deformed individualism that means you have a right to step over the other to make it to the top. I don't know, I don't see an exit to our current political-financial problems. I mean, a solution for the majority of the people, for the (gulp!) self-hating working class. 9/20/2011 11:47:19 AM EDTRecommendReplyReport Awake There is no solution under the current system. The system will have to change. It is time to read Marx again, or for the first time, and see what he says about the capitalist system cannibalizing itself. The reason we keep bailing out the banks is that they have failed to deliver the necessary service to the countries and people who they are so eager to fleece. The current system does not work and is itself a 'Ponzi Scheme' based on interest rates that destroy the small borrower to benefit the endless need for greed of the coddled few. It is a class war after all. 9/20/2011 11:54:25 AM EDTRecommendRecommended by 1 readerReport robgomez19841 I agree. Marx even said that 'communism' is not possible until the whole world is capitalist, in the sense of all the world ruled by one capitalist order. We are going that way, the NWO is just that. I guess things have to get terribly worse before we see the fighting here. I nor you will see a better world. 9/20/2011 11:57:32 AM EDTRecommendRecommended by 2 readersReport Awake There must be a fundamental flaw in the model. The idea that banks need constant reassurance along with their gigantic rates of usury and their gambling earnings is wrecking the world economy. Perhaps it's time to nationalize the banks and other industries so that they work for people instead of filthy rich 'investors' and so-called 'job creators'. The profit model is nearing the end of its life. 9/20/2011 11:46:19 AM EDTRecommendReplyReport RandomAnon If things are becoming uneven, someone will be playing the spread. 9/20/2011 11:35:17 AM EDTRecommendRecommended by 1 readerReplyReport robgomez19841 I don't know you, people, but I'm really fed up with every day news filled with death, assassinations, wars, police brutality, paying for armaments, civilians caught between warring sides, money to fight wars with 'unman' planes, finessing the art of killing for profit... And then flipping the page to find fat and skinny politicians lying to you and me, fighting to be the one who will give the final killing blow that will kill the American middle class and poor, posturing to win the elections by creating divisions they intent to not repair because divide and conquer is good politics, promoting fear and instability in our daily lives with 'news' that this or that country is about to collapse because we don't bail out the banks and the elite... Something is wrong in our daily lives, and I'm willing to bet my house that it has something to do with your fears to stand up and defend yourselves from the elite and the government. 9/20/2011 11:24:14 AM EDTRecommendRecommended by 8 readersReplyReport Desertdiva1 Your theory is about to be tested. When the global economy falls it will take the American economy with it. When that happens the riots and violence will begin. It's going to get ugly very quickly and all those greedy politicians will be left to fend for themselves by their corporate masters. So I'll take your bet that the American people will indeed go after these corrupt politicians who sold us all out. 9/20/2011 11:45:03 AM EDTRecommendRecommended by 5 readersReport ticked Agreed and they are developing killing drones so they can take out insurrections as America is fast becoming a police state........... 9/20/2011 11:46:19 AM EDTRecommendRecommended by 2 readersReport 1 more (expand) GPorter2 We need to find trustworthy media sources (independent, not corporate), a 3rd and 4th choice in our politics, and regulated (with real oversight) financial markets. IF none of that works, then I'm all for Marx. 9/20/2011 1:03:55 PM EDTRecommendRecommended by 2 readersReport kucy1 I guess this means Bernake will be printing more play money! Keep driving down those dollars Ben! 9/20/2011 11:17:55 AM EDTRecommendRecommended by 3 readersReplyReport jdsolano As usual, the IMF vultures are missing the big picture. The real problem remains the same: the world economy is controlled by the same criminal cartel that caused the 2008 collapse. Yes, yes, I know, it's not politically correct to call 'financial institutions' -Goldman, Citi, Barclays, UBS, Societe Generale, etc- what they really are: criminal cartels. Well, they are the ones who control the flow of money AND DERIVATIVES around the world. They play casino with other peoples' money, and they ALWAYS WIN, no matter whether their customes win or lose. Currently, the problem is not Greece. The problem is that all those 'financial institutions' have been playing casino with Greek bonds. Some of them are buying and selling insurance against default; others are shorting Greece; some are betting that the European Central Bank will finally buy all those worthless papers -another bailout; others are shorting the ECB. Same thing for Spain, Italy, Portugal, Ireland, the UK, and.... yes... the US. Obama had the opportunity to completely overhaul the world's financial system, and kick the maffiosi out for good. But.... those maffiosi are his donors. So, he let Wall Street emerge unscathed from the financial crisis. Now, they are back. 9/20/2011 10:54:58 AM EDTRecommendRecommended by 7 readersReplyReport ticked I couldn't have said it better myself....but keep in mind the lying and criminal bush/cheney/tenet/rove/rumsfeld/rice/gramm/greenspan/berancke/paulsen/geithner and more got us into these messes with endless invasions of soverign countries based on lies and they are responsible for the enabling of the finacial crooks...... Both parties are to balme as they argue but DO NOTHING to end these senseless wars and re-regulate the fiancial systema nd reduce government at every level and change ineffective policy such as taxes, drugs, guns, energy, education, welfare, housing and as well the guardians are inept- sec/cftc/doj........ In 2012 throw out all incumbents as they all caused these problems and have done NOTHING to rectify them............and elect NO demos and NO repubs....... 9/20/2011 11:43:32 AM EDTRecommendRecommended by 4 readersReport labec It's all been predicted, is coming to now, and this country's response will be a false terrorist threat(?) 9/20/2011 10:31:30 AM EDTRecommendRecommended by 4 readersReplyReport Elisa2 Business and great wealth have no loyalty to any nation or any people. This is what happens when business and great wealth are allowed to corrupt governments and become too powerful. All they see is that China and emerging economies are serving them. They could really care less about anything else. They have no fear of war, famine, plague, or death other than to not where it occurs and arrange their travel schedules accordingly. How many people will end up dead in the areas of once established economies does not matter to them, any more than it mattered to them about death rates in undeveloped nations that they took resources from while giving little back to. Be realistic about the kinds of people that are sitting on the global thrones of world power. 'It's just business.' 9/20/2011 10:14:52 AM EDTRecommendRecommended by 3 readersReplyReport GoWest2 I hereby declare that all public and private debts are null and void. Now we can start from scratch. 9/20/2011 9:56:29 AM EDTRecommendRecommended by 2 readersReplyReport avgjoe23 Rent 'Inside Job' (documentary about the financial crisis by C. Ferguson, narr. Matt Damon). Fascinating film with appearances by Lagarde.
To Italy's downgrade - S&P, Moody's et al, appear in 'Inside Job' before a congressional committee, all
saying that their ratings are 'merely our opinions' and not guidance on investment quality. So, all you
Ameridans, Italians and other downgraded folks out there, take heart. Ratings mean nothing!
johnfour1 The EU's inability to get all member countries to agree on a course of action brings to mind the dilemma faced by the US under the Articles of Confederation. Unfortunately they don't have a unifying leader of the stature of George Washington to chair a Constitutional Convention, nor a group of leaders with the political clout of our Founding Fathers to persuade all the member states to vote for ratification. I'm concerned that we're about to see a reprise of the 1930s and 1950s with China in the role of Nazi Germany and the Soviet Union respectively. 9/20/2011 9:43:38 AM EDTRecommendRecommended by 3 readersReplyReport Desertdiva1 China's provinces are defaulting on loans. The Chinese government still has plenty of liquidity but internally China is becoming a mess. Inflation has now slowed in China but China slowed their own economy down almost to a halt in order to fight it. I'd say China is preoccupied with fixing their own mess currently. 9/20/2011 11:39:49 AM EDTRecommend |
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By Howard Schneider,
Published: September 20 |
| The text being discussed is available at |