No Revival in US, Big Economic Crisis Ahead

The US markets ended lower for the second session yesterday on the back of mixed global cues and disturbing job loss data. Does this mean we’re still not out of the woods? Marc Faber, Editor and Publisher of the Gloom, Boom & Doom Report feels nothing has been solved in the US in the last 6–9 months and that a big economic crisis was still to be seen ahead.

http://www.lewrockwell.com/faber/faber22.1.html

In a display of laziness, i roughly agree, via cutting and pasting last post in peats PC thread:

The Director of the Third World Forum, Samir Amin, predicts even greater grief for the global economy in his critique of a UN report authored by Stiglitz on reforms to the global financial system:

http://allafrica.com/stories/200909040702.html


"Stiglitz is, with the orthodox liberals of the Right, convinced that the system of growth of the two decades preceding the meltdown of 2008 was fundamentally 'healthy' and that, as a result, some improvements in the 'management of financial risk' are the sum total of what 'must be done'. Liberal economists simply ignore those analyses, which relate financialisation of systems to declining hegemonies throughout history, superbly argued by Giovanni Arrighi (The long twentieth century, 1994). I had qualified since 2002 the current pattern of financialisation as the 'Achille's heel' of globalisation, preparing 'an imminent financial catastrophe'."


"The fact that the situation is as it is indicates that the chaos of the global system is not being resolved. On the contrary, the world is heading for even greater chaos."


"'Financialisation is not an autonomous factor, it appears as the logical counterpart to falling wages and a reduction in sufficiently profitable investment opportunities. This is why rising social inequality (within each country and between zones within the global economy) is a constitutive trait of the functioning of contemporary capitalism'

This is the choice of the whole United States establishment ... in effect, the model in question ('social and international inequalities associated with financialisation') is the only one that allows the United States to maintain its position of hegemony ... (ending it) ... would transfer the burden of the social crisis to the United States itself."

I don't actually mind you doing this, given it is applicable to the thread topic and I missed this. I disagree with Stiglitz (even though I respect some of his contributions to economics) on this particular subject. This crisis is not the fault of globalization, it is the fault of fiat currency, loose monetary policy and interconnected global markets hiding the inflation.

It has systemic causes + globalization. The inequality is also strongly correlated to this.