[Marxism] Fwd: Apocalypse now: has the next giant financial crash already begun? | Comment is free | The Guardian

Louis Proyect lnp3 at panix.com
Sun Nov 1 17:06:11 MST 2015

The 1st of October came and went without financial armageddon. Veteran 
forecaster Martin Armstrong, who accurately predicted the 1987 crash, 
used the same model to suggest that 1 October would be a major turning 
point for global markets. Some investors even put bets on it. But the 
passing of the predicted global crash is only good news to a point. Many 
indicators in global finance are pointing downwards – and some even 
think the crash has begun.

Let’s assemble the evidence. First, the unsustainable debt. Since 2007, 
the pile of debt in the world has grown by $57tn (£37tn). That’s a 
compound annual growth rate of 5.3%, significantly beating GDP. Debts 
have doubled in the so-called emerging markets, while rising by just 
over a third in the developed world.

John Maynard Keynes once wrote that money is a “link to the future” – 
meaning that what we do with money is a signal of what we think is going 
to happen in the future. What we’ve done with credit since the global 
crisis of 2008 is expand it faster than the economy – which can only be 
done rationally if we think the future is going to be much richer than 
the present.


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