According to Heiner Flassbeck, former head of UNCTAD, there are many factors pointing to a convergence in a normal cyclical downturn, deepening recession in Europe, complicated by potential hard Brexit–With host Paul Jay
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how overvalued is the stock market? that isn't a small thing, it wasn't just foreclosure frauding 7mil out of their homes that crashed. the overvalued stock market and bribed s&p/moodys rating agencies helped. really the overvalued stock market is the big piece.
the idea that gov't debt doesn't matter much is what has gotten the world in $250 trillion debt.
Western civilisation has 20 years at best
Wages for the bottom 70% of workers across the vast majority of advanced nations are lower today than they were for similar positions 40 years ago once you adjust for inflation. I wish these people would stop talking about a bloody recovery, for workers, there has not been one. Yes unemployment is down but when you classify those working at least 1 hour per fortnight as "employed" of course this pile of shit is going to look like it should smell of roses.
Shortest description of post-crisis economics in general, on the Apple Inc example, given by Mark Blyth: "Apple sits on the largest pile of cash of any corporation in the world, they think it's about a quarter of a trillion dollars. Rather than using that, they borrowed money because it was so cheap [low interest rates], issued their own bonds which earns them a premium, on top of that took the cash from that and then bought their own shares back to boost the value of the stock so they could reward themselves even more money, and we booked that as investment, so they don't pay any taxes. Does anyone else want to call that bullshit?". Now, i think this is pro-cyclical, and that if the stock market fails, there no other growth, since apple shows us, essentially all of the meager 2.2% US GDP growth is probably carried mostly by this phenomenon + mergers. But mergers also don't really create anything. They improve efficiency on the one hand, but considering that it is leading to monopolies, its probably true that it will reduce efficiency even more in the medium term, plus short term unemployment, plus Jordan Brennan shows that mergers lead to less production investment (logically, if you buy Monsanto, you are out of cash for a while to invest…). There, just a few extra points.
The next bubble to burst will be the gluttonous greedy rich. Unless they fertilize the world with there ( our ) wealth they have stolen.
So when country goes in debt till neck and borrowing money which will never return it is ok, this is not dangerous, but when country do not want to become debt slave, and is cautious in indebting this is strange, funny, dangerous, big problem. Big cocaine addict who wears suit of 10000 USD, taking 300 USD of cocaine daily, go to expensive dinners and running blindly into speculative investment of dozens of millions, taking more and more new credits every day while paying only part of his duties – he is Good!! Perfect!! Men who know exactly how many he invested in what, when it would return and how, he calculating risks and profits, paying all his debts, bills and salaries to his employees. He is funny? Dumb?
Please, find another expert.
It seems that the whole world is sick with a toxic disease. There are multiple issues creating the disease. But it seems to be a perfect storm brewing.
Paul Jay. Everybody is blaming it on neo-liberalism, and nobody is talking of nationalism, without nationalism people would be able to deploy easily anywhere and find jobs, there would be more opportunity. The nationalist paradigm is in great part, IMO, much to blame, more yet coupled with neo-liberalism, one can easily get to the bottom!
Thanks Paul Jay!
Thanks The Real News Network!
The bankers are still controlling all the world's economies for profit. They don't care if they cause wars, that's just more money in their pockets.
US economic charts decoupled right around Christmas time… We are 4mths into this- but don't expect economists to mention this for another 2mths (they wait 2 quarters to report trends)…
Psst!!!! Cliiiiimate Chaaange…
The bankers can do anything they want to us. They are literally in control of everything. Just another way to control us. When this happens we need to establish a state bank.
Yeah right… debt is not a problem yet… Then why can't countries, private sector and households take more loans, even though interests are near zero? Banks are struggling to get money into circulation and can't make profits (they profit from loan interests).
The very fact that they can't take loans, was solved temporarily with the quantitative easings in both the USA and EU. After the QEs there was some growth reported in both regions, when money in the system increased. It was still credit money, but it pushed the problems further back.
The US has student loan debt, credit card debt, housing loan debt and an seriously inflated stock market. That's more of a problem than this guy leads on. We are in a bigger bubble than before the last recession.
Fascism is alive and well and has it's hands on the levers of power in both Europe and the US…
Bring back the beard!
One thing ALL ‘economists’ fail to mention: one man’s inflation in another man’s deflation.
Come on people! AMERICA has been in a recession since ‘08. Subtract real inflation from GNP and growth has been negative.
Every 4 to 7 years we have the same conversation. Market Shmarket…?! Change the stupid system.
I don't think this guy knows what he's talking about. Massive borrowing to stimulate the economy is a short term fix to a long term problem. What a moronic solution.
Some debt is good, the right mix is best. But over-reliance on increasing mountains of government debt to solve growth problems? What about long term stability? That's just kicking the can down the road, which I guess makes sense, because when the markers are called, this guy won't be around to have to answer for it.
When it comes time and the U.S. is unable or even unwilling to repay its debt, BRIC countries that are growing now will invest in the EU and not the U.S. But this may be generations from now.