"Crisis of Confidence" For World Economy

[Bear12feet]

There is "crisis of confidence" according to Australia's Swan.

World Bank industry has the major crisis of confidence now. Thanks to who?

 

[uscitizen]

Thanks to who? The world finiancial industry of course.

they embraced the fraud and paid well for the deregulation and rules the govts passed.

 

[bitterlyclingin]

August 16, 2011
The Poisoned Fruit of Social Democracy
By Steve McCann

It is difficult not to notice that most of the financial, economic and societal problems making headlines in the world today are centered in Europe and the United States. The reality is that the "West" has finally reached the point of saturation wherein its economies and societies can no longer afford to guarantee a certain standard of living for the citizens of these countries in exchange for votes.

These nations have two factors in common: 1) they are all either confirmed to be or determined (as in the case of the United States) to become socialist democracies; and 2) they have evolved into overwhelmingly consumption-based societies, greatly diminishing their goods-producing sector (which generates the real wealth of a nation), thus eroding their job-creation ability as well as the nation's wealth and tax base. Yet the governments of all these countries continue to deficit spend, over-tax (chasing wealth and job-creation off-shore) and borrow in an effort to meet the expectations of the people.

This never ending downward cycle is about to crash as the central banks in Europe and the United States cannot continue to, in essence, print money and guarantee the balance sheets of the banks and government debts of the various nations caught up in this maelstrom.

It is the exception that a country in this sphere is not facing long or short-term insolvency. A cursory review of the American Thinker National Insolvency Index (10 being the benchmark with the index above 10 for three or more years indicating a severe potential of insolvency and near intractable societal problems) is a follows for a variety of countries in the West including some that are recently in the headlines. (http://americanthinker.com/articles/2011/08/the_bitter_fruit_of_insolvency.html)


2009 Index
2010 Index
2011 Index

Spain
26.1
29.7
24.3

Greece
24.8
20.2
24.3

Ireland
24.4
45.7
24.6

Portugal
19.8
20.2
21.7

United States
19.1
18.5
19.7

United Kingdom
16.7
18.6
17.2

France
16.6
17.6
17.5

Italy
13.6
13.8
17.2




The higher the Index above 10, the greater the problems that country is experiencing and viable solutions to solve these dilemmas will be increasingly difficult to enact. This has been proven out in the budget fights in Washington D.C. and the failed attempts to pass austerity packages in the various capitals of Europe.


http://www.americanthinker.com/prin...8/the_poisoned_fruit_of_social_democracy.html

 

[dilloduck]

It's a bit tough to have confidence in an economy that creates money out of thin air and a currency is only as good as the government that backs it. I think we have come to the end of the line with the fantasy money but as a society we don't know where to take it from here.

 

[bitterlyclingin]

The Democrats are all prepared to follow Michael Moore's dictum "There's plenty of money left in the country. All we have to do is take it"
Welcome to 1937.

 

[Truthmatters]

Thanks to who? The world finiancial industry of course.

they embraced the fraud and paid well for the deregulation and rules the govts passed.

So true

 

[uscitizen]

The Democrats are all prepared to follow Michael Moore's dictum "There's plenty of money left in the country. All we have to do is take it"
Welcome to 1937.

Or is it 1987? IN fact if not date?

 

[william the wie]

The Democrats are all prepared to follow Michael Moore's dictum "There's plenty of money left in the country. All we have to do is take it"
Welcome to 1937.

Or is it 1987? IN fact if not date?

Bad choice. 87 was caused by or fortunately caused the very early stages of the unraveling of the S&L crisis.