Posted 2 years ago on Yahoo board,Ísn´t this forecast oustanding?
admin | Apr 05, 2010 | Comments 3
The United States is the epicenter of the world crisis
Jorgelina Guido
The profits of the world’s principal capitalist corporations are on the rise permanently, but “investment is still weak.” The logical consequence of this situation is an incredible over-accumulation of capital. According to a report of the IMF, published in the Buenos Aires daily Clarín on July 17, world savings has reached “24.9% of the world’s GDP.” This “oversupply of global savings” is sucked in by the US economy, which transforms part of this excess of capital into US Treasury Bonds in order to finance the monumental Federal Government deficit and the deficit in the balance of payments (it has risen to “668 billion dollars” per year), and another part is earmarked to feed speculation in the real estate market. It need only be said that in Miami there are properties “that are resold up to five times before the first brick is laid.”
If we bear in mind that the principal debtor in the world is the United States (3 trillion dollars), and that in order to face that debt it needs to absorb more and more this “oversupply of global savings” (which affects the rise in the interest rate, brakes its economic development and diminishes its capacity to make payments), if this set of factors are born in mind, we cannot be surprised at the fact that many specialists in finance hold that investors esteem it probable that the United States enter into default. For this reason, many “governments and investors” are already thinking of changing their minds “regarding the placing of their savings into US bonds, unleashing in this manner a fall in the dollar and making the interest rates rise.” This would lead to a world-wide financial crisis and to a profound economic depression. This probability of a US default was made tangible when just a few months ago the central banks of Japan and Korea “spoke of no longer recycling their trade surpluses purely in dollars.”
The conclusion arising from this is that the epicenter of the world crisis is in the heart of US imperialism and that any political strategy towards a solution to the current situation must be based on these profound disequilibriums in the world economy
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Filed Under: Real Estate Forecast
there was too much too read so i didnt even bother besides i dont care a bout a forecast 2 years ago STOP LIVING IN THE PAST!
yep…coffee house marxists have been predicting the collapse of the corrupt capitalist system since Paris cafe’s were still affordable….
oh…by the way….how’s that transition from the “dictatorship of the proletariat” to the perfect “communist reality” coming along…?
Keep yourself informed and aware and this should be no surprise to anyone. We have a combination of massive national debt and huge trade deficits. The DOW in the past six months has quietly dropped two thousand points but people were to caught up with the housing and credit markets to notice. Business has fed us the line that they need to outsource to be competitive, bullcrap. The truth is you can’t keep shipping jobs overseas without it having an effect here on the economy but huge money for the few will make some people willing to cut their own mother’s throat.