GLOBAL ECONOMIC VOLATILITY. TOWARDS A NEW FINANCIAL CRISIS, SOCIO-POLITICAL REACTIONS
Eric Toussaint, Prof. Patrick Bond, Ishmael Lesufi, and Lisa
Read the first part of this series here.
The elements of a new international financial crisis are in place. Although we do not know when it will break out, it is unavoidable, and its impact on world economy will be as significant as the 1880s-90s, 1930s-40s and more recent 2008-09 meltdowns. Worse, far fewer of the global capacities of the latter period – rapid lowering of interest rates, printing of money to buy up state debt (‘Quantitative Easing’), and sufficient fiscal space for bailouts – are available to global crisis managers. And most troubling, many more of the proto-fascistic political characteristics reminiscent of the 1930s are looming, especially in the new contextualisations of the Global South.
The contributing economic factors include:
- sharply increased private debts of corporations;
- speculative bubbles in financial asset prices: stock markets, debt security prices, and.....
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