We had a server outage, and we're rebuilding the site. Most of the site features won't work. Thank you for your patience.
imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

World Economies on Life Support

by Stephen Lendman Tuesday, Jul. 17, 2012 at 8:56 PM
lendmanstephen@sbcglobal.net

class war

World Economies on Life Support

by Stephen Lendman

Since crisis economic conditions erupted in fall 2007, resolution has been sorely lacking.

US corporations and America's super-rich benefitted from over $3 trillion in tax cuts.

Anywhere from $9 trillion to double or triple that amount went to bankers that caused the crisis.

Ordinary Americans have been largely left out. The nation's economic engine stalled. Recovery is more illusion than reality. Increasingly it looks dangerously troubled. More on that below.

Financial analyst Martin Weiss said he's "never seen anything like the whirlwinds and dark clouds now encircling the so-called advanced economies of the world."

Since crisis conditions erupted, one fourth of developed countries' workers are unemployed or underemployed. Debt levels too onerous to repay were incurred. Solutions proposed involve piling on more.

Troubled countries include the PIIGS (Portugal, Ireland, Italy, Greece, and Spain) making headlines. Vulnerable also include America, Britain, France, Belgium, Canada, Japan, and others.

Even China's vaunted economic growth is weakening. Brazil and India are also affected. It's not an encouraging sign. In a recent Bloomberg interview, economist Nouriel Roubini warned of a 2013 meltdown worse than 2008.

Banks are operating illegally, he said. The only way to stop it is "break up these financial supermarkets" and hold responsible officials accountable.

Bankers are greedy, he said. Massive conflicts of interest exist. Firms on both sides of major deals. Without substantive change, crises will continue and worsen. Political will is lacking. Policy measures so far resolved nothing.

A fundamentally corrupt system festers. Nothing changed. Too-big-to-fail banks get bigger. No one high up faced prosecution. Things don't look promising ahead.

Market analyst Byron Wien calls the smartest man he knows in Europe a "firedancer."

He left him unnamed. He's been writing about him for years. He's known him for decades. He's "shown an almost uncanny ability to see major events affecting financial markets before other observers."

For years, he's worried about excessive borrowing and debt. He sees an inevitable day of reckoning coming. He calls himself a realist. In recent years, policies employed haven't worked.

"Everything is fine as long as the cost of ten-year debt doesn't exceed the nominal growth rate." When it does, servicing it it "becomes an unsustainable burden."

Spain, Italy and Greece passed the point of no return. Other countries risk following. America isn't quite there yet. It's heading in the wrong direction.

Piling on debt "can't go on forever." Germany will stop backing Eurozone monetary expansion. Th Fed will "get uneasy as well."

At some point, inflation "will become a factor." Massive money printing's at fault.

Before things fall apart, "authorities will pull out every trick in the book to prevent catastrophe." At best they'll buy time. Problems aren't being solved. Greater ones are certain.

Spain and Greece will default, he predicts. "In the short term, interest rates should rise because debt is growing faster than GDP." The same dynamic affects America.

A banking crisis will follow one or more defaults. "What we are experiencing is an accumulation of bad decisions."

Banking worldwide got through the 2008 crisis, but "hasn't done so well since then." Looking ahead, things look grim. Wien said he left the smartest man's office "somewhat dazed." He hopes he's wrong, but his track record suggests otherwise.

Complacency masks deteriorating conditions. Hope springs eternal that central banks will solve all problems. Eventually, they exhaust workable policy measures.

The normally optimistic Fed sounded dour in its latest FOMC minutes, saying:

"Information from manufacturing and transportation firms was generally less optimistic than earlier in the year. There were a number of reports of slowing sales to Europe and Asia."

"Contracts in some parts of the country also indicated that firms had become more cautious in their hiring and investment decisions, with most capital investment being undertaken to improve productivity and reduce costs rather than to expand capacity."

"Some participants cited examples of business contracts saying that heightened uncertainty about future tax and regulatory policies had led them to put potential investment projects on hold until the uncertainty is resolved."

America's economy is in the early stages of confronting two shocks - Europe's deepening recession and a clouded fiscal outlook.

Monetary policy is a weak antidote to more fundamental problems, it suggested. It's also worried about structural unemployment, inflation, and unprecedented wealth destruction.

From 2007 - 2010, it collapsed an epic 39%. In 2010 dollars, median household net worth declined from $126,400 to $77,300. It's down to 1992 levels. Fifteen years of wealth accumulation vanished. Left unsaid is how much more may follow.

For now, households would have to see their net worth rise almost two-thirds to return to pre-2007 levels. Secular economic decline prevents it.

Equities returned virtually nothing since spring 1999. Before crisis conditions end, they may see steep declines. America's broken jobs engine reflects it. Excuses don't hold water. Expect future downward revisions to show conditions worse than now reported.

Progressive Radio News Hour regular Jack Rasmus says when economists resort to metaphors, they have little idea about root causes or won't say. Blaming poor results on weather or seasonality doesn't wash.

Counterproductive monetary and fiscal policies are coming home to roost. Reported higher Q I jobs numbers didn't represent reality. According to Rasmus:

"It was the outcome of statistical estimation methods by the US labor department that consistently overestimates job creation over the winter quarter."

It erred three consecutive years. America's jobs engine is broken. Based on the 1980s calculation model, real unemployment is 22.8%. The reported 8.2% number is blarney.

Obama's stimulus efforts did little to create growth. Now it's run out of steam, says Rasmus. Fed money creation (QE) helped bankers, not the economy or troubled households. Chickens are coming home to roost.

Real disposable income growth is nonexistent. Job creation is pathetic. Full-time ones are disappearing. In the past three months alone, 700,000 were eliminated.

Rasmus describes "churning" from full to part-time work. When that happens, few net jobs are created. Ones that are pay less with few benefits. A destructive downward cycle exacerbates dismal conditions.

Obama officials claimed manufacturing would produce growth. Most sector jobs created were managerial, supervisory and professional.

In 2012 Q II, net rank and file job creation declined by 170,000. It shows contraction, not growth. Expect acceleration ahead. New factory orders slumped in June at the worst rate since 2009.

Public workers have been declining for over three years. State and local governments have been especially hard hit.

Construction also shows contraction. In Q I, 13,000 jobs were lost. In Q II, another 42,000 were eliminated. Ahead things look worse.

Putting a brave face on dark times doesn't wash. Sooner or later even cockeyed optimists will come around. Weather expertise isn’t necessary to know which way the wind is blowing.

GE chairman/CEO Jeff Immelt also serves as Obama's Council on Jobs and Competitiveness head. His idea of a jobs creation program, said Rasmus, is "more free trade and deregulation in exchange for hiring a couple thousand jobs temporary status workers in the US at half pay."

America's duopoly power enforces this and other destructive policies. Imagine if current or future leaders go too far, especially on issues affecting world peace.

Evolutionary biologist Ernst Mayr (1904 - 2005) expressed concern. He said human intelligence doesn't guarantee survival. He believed beetles and bacteria stand a better chance.

He said species on average survive about 100,000 years. Humanity's been around about that long. He wondered if we'd use our remaining time to self-destruct.

If so, we'd be the only species ever to do it. Given our current path, it's possible and perhaps sooner than most people imagine.

In the meantime, our wealth, freedom and well-being are being lost. Stopping it should be priority one.

People control their own destinies if they're up to the challenge to try. All great struggles are won the same way.

Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.

His new book is titled "How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War"

http://www.claritypress.com/Lendman.html

Visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.

http://www.progressiveradionetwork.com/the-progressive-news-hour
Report this post as:
Share on: Twitter, Facebook, Google+

add your comments


Local News

Woolsey Fire: Worst News of 2018? J01 12:18AM

Oppose Environmentally-Harmful Development D10 4:03AM

Oppose Environmentally-Harmful Development D10 3:58AM

OUR HOUSE Grief Support Center Presents Night for Hope O30 5:38PM

Marshall Tuck’s racist dog whistle O27 5:01AM

Marshall Tuck’s ethnocentrism contradicts Californian values O27 4:32AM

Contra Costa-Hawkins O25 3:48AM

Debunking Some Anti-Prop 10 Propaganda O12 6:56AM

Why Should California Choose De Leon Over Feinstein? O10 9:55PM

Change Links September 2018 posted S02 10:22PM

More Scandals Rock Southern California Nuke Plant San Onofre A30 11:09PM

Site Outage Friday A30 3:49PM

Change Links August 2018 A14 1:56AM

Setback for Developer of SC Farm Land A12 11:09PM

More problems at Shutdown San Onofre Nuke J29 10:40PM

Change Links 2018 July posted J09 8:27PM

More Pix: "Families Belong Together," Pasadena J02 7:16PM

"Families Belong Together" March, Pasadena J02 7:08PM

Short Report on the Families Belong Together Protest in Los Angeles J30 11:26PM

Summer 2018 National Immigrant Solidarity Network News Alert! J11 6:58AM

More Local News...

Other/Breaking News

FARCELONA.2 J20 7:18PM

FAKE NEWS POR SOROS J20 6:11PM

Chemtrails and Prince J20 2:43PM

Wages For Housework J20 2:41PM

Tutelle comportementaliste J20 9:18AM

A Mistake: Jesse Jackson-Toyota deal-in Lexington -Ky is .8 billion over 10 years 2018 J20 1:17AM

If Trump Declares a AantionalEmergency, He'll Be Breaking the Law J20 12:47AM

Jesse Jackson's Sneak Attck on Toyota Lexington Ky and it's workers 2018 J19 9:12PM

Video: Chris Herdges in Eugene, 1 hr 24 min J19 5:37PM

FAKE NEWS J19 2:31PM

MACROTHSCHILD.2 J19 11:03AM

Judge Delays Ruling on Puerto Rico Debt Deal White House Opposes Island's Food Assistance J18 6:04PM

BATACLOWNS J18 9:28AM

FALSAS VICTIMAS J18 9:22AM

Paraphysique de proxémie guerrière J18 7:59AM

MACROTHSCHILD J17 9:38PM

FARCELONA 8.17.2017 J17 3:23PM

DEAD MAN LIVING J17 10:46AM

DIARY OF A CON MAN J16 10:40PM

PR Debt Cancel, Judge Reviews Cofina Debt J16 9:04PM

Réseautage, fragmentation du capital J16 4:20PM

Paraphysique de manipulation mentale et sociale J15 9:51AM

The Global Justice Project and Human Survival: We're Badly Off Track J15 5:08AM

The Global Justice Project and Human Survival: We're Badly Off Track J15 5:08AM

The Global Justice Project and Human Survival: We're Badly Off Track J15 5:08AM

Markets as a Fetish, Globalization, and Dissent Management J14 1:03PM

State Debts - The Primal German Fear J13 5:09PM

Sans liberté, sans égalité, sans fraternité J13 8:09AM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy