World Bank says collapse has arrived

Karl FitzgeraldCommentaryLeave a Comment

Global poverty media call. 10/11/08
Creative Commons License photo credit: World Development Movement

The reality is finally hitting. World Bank says collapse has arrived:

global economic activity would shrink “for the first time since World War II, with growth at least 5 percentage points below potential”.

This statement is an important recognition that the world economy and with that the security of our livelihoods are under its biggest threat, perhaps ever. Will this lead to thinking outside the box? Unfortunately the UK and the US have taken to printing money (a recipe for hyper-inflation disaster), such is the limit to their two dimensional economic tool box.

This is an attempt to maintain the wealth gap, rather than allow market forces to wipe out the greedy for their exuberant behaviour.

Listen to what Hudson has to say here on Renegade Economist TV. Make a cup of tea to hear him speak at length on “The Way We Were and What We Are Becoming”.

We need to reduce the amount we are paying in rent/ mortgage asap. Then we will have a enough for food and fun, savings and investment. Business can start up without the monthly threat of tying ends together to make payments for double the long term rental average (Australia).

Eyebrows raise when one reads that 130 developing countries, a massive 67% of the world’s nations (and probably 80% of its population), will suffer dearly from the policy black holes of the Washington Consensus.

Some say that more foreign aid must be given as payback for the failure of neo-liberal economics to deliver the goods. With over $US 1 trillion in aid since WW2 having taken these countries BACKWARDS, would it not be time to look outside the square?


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