i have just seen an interview with the chief economist from the world bank..
he made a strong case for an upcoming global recession, unless the big problem, as he sees it, is solved.
this problem is the american current account deficit…(meaning they are running their economy on credit, and that economy is also running out of steam at the same time)..in simple, yet accurate terms, this is two competing forces, on an inevitable collision course..whoar!
he says there are only two ways to ease this deficit problem; one is a sharp rise in domestic (usa) interest rates, and/or a drop in the dollar..or some combination of the two..
but, all this is an anathema to bush; as he is running the largest deficit in history, (he is an economic as well as an environmental visigoth).
so the chances of bush attempting to deal with this crisis are zip, you’d think..(of course the most obvious and striking analogy of bushs’ inaction is nero fiddling while rome burnt)…
the chief economist of the world bank tells us the consequences of doing nothing are chilling..the crash will be even more spectacular and will ripple out through the global economy…
the implications for us all are profound and far reaching..
those countries that will be most sheltered from these effects are india and china; this is because of their strong domestic markets, and it is for these reasons that those economies will be the first to recover…
i tell ya, this is serious news folks, the business dude on bbc looked like he needed a cup of tea and a wee lie down as he sat there digesting the implications…his face was positively drained of blood, and his eyes and nostrils flaring, as he mumbled a disjointed sign-off..he’d quite lost his cool..