Looming first world debt crisis
lnp3 at panix.com
Wed Sep 10 07:41:57 MDT 2003
IMMINENT FIRST WORLD DEBT CRISIS WORSE THAN ‘THIRD WORLD’
ECONOMY REACHING ‘TIPPING POINT’ - MIDDLE CLASS CONSUMERS WILL CARRY THE
CAN FOR FINANCIAL COLLAPSE
A new annual report on the global economy published by nef today,
Monday September 1st, predicts that a giant credit bubble, created by
globalisation’s decades of ‘easy money’, has now reached a “tipping
point” – a point that has historically triggered financial crises.
Ground-breaking new analysis in the report – titled Real World Economic
Outlook - shows that Japan’s financial crisis was triggered in 1990 when
the total stock of financial assets began to outstrip GDP by nine times.
Two of the world’s richest countries, the US and UK have followed
Japan’s example, inflating the credit bubble and the accumulation of
financial assets through de-regulation and reckless lending and
borrowing. This bubble has been fuelled further by the decisions of
Central Bank governors and their boards to lower interest rates to
historically low levels.
Jubilee research at nef, the team that spearheaded global awareness of a
third world debt crisis, are releasing provocative new research into the
first world’s huge debts. This shows that credit and other paper
‘promises to pay’ now exceed levels of real income (GDP) by ten times.
Recent stock market falls, drastic though they have been, have barely
dented the credit superstructure. When this credit bubble bursts, the
report concludes, it will be middle class consumers in both the US and
UK that will bear the brunt of the financial crash.
The Marxism list: www.marxmail.org
PLEASE clip all extraneous text before replying to a message.
More information about the Marxism