IMF: Second Wave of Global Economic Collapse will be "Disaster"

[Meatpie]

The International Monetary Fund (IMF) has warned that civil wars and widespread social unrest may break out because the global recovery is built on unstable foundations.

IMF chief Dominique Strauss-Kahn (pictured) has highlighted ‘dangerous’ imbalances that threatened to derail a global recovery.

In a paper, Inequality, leverage and crisis, he said that many nations still face high unemployment and China, India and Brazil were already facing the threat of overheating.
‘It is not the recovery we wanted. It is a recovery beset by tensions and strain, which could even sow the seeds of the next crisis,’ said Strauss-Kahn.

‘Global unemployment remains at record highs, with widening income inequality adding to social strains. We could see rising social and political instability within nations – even war.’

The paper warned of ‘disastrous consequences’ for the global economy unless workers regained their ‘bargaining power’ and suggests changes to the tax system and debt relief for workers.

Strauss-Kahn identified China and Germany as two countries where crises could emerge as they rely on export surpluses to power growth at the expense of the US and other deficit countries.

http://citywire.co.uk/new-model-adv...l-war-outbreak-over-global-imbalances/a468243

 

[JValdez]

Self-referencing "Sinde Law" reply, no one has any fucking clue as to how bad it's going to be when this mother goes down. (Pardon my French) The "Industrial West" is ultra-compromised by mega-mega-mega levels of debt which will be our undoing. It is a global phenomenon, because like it or not, every one of us on this creaking rock of nearly 7 BILLION souls is interconnected, whether we "get it", "like it", or not. The web will central to the unraveling in that "money" is really just 0's & 1's in the central bankers datastores, & when the final accounting shows how far off any concept of wealth or reserves is, it will all just vanish, poof, because there really isn't "anyone behind the curtain". The web has enabled "just in time" supplychains that have provided fabulous profit and efficiency, but if ANY link in the chain is broken, it's curtains, folks. Think crude interruptions for any number of reasons, and voila, catastophe--if we can't import crude because we're insolvent, or the gulf is in extremis, kiss your ass goodbye. Since our entire existence is facilitated by oil, & the fact that oil & the world economies are inextricably entwined, it only remains to be seen in what form the denouement will take. Unemployment/underemployment are hideous reminders that something is still terribly wrong, and that any talk of "recovery", especially in Amerika, is just that, talk. Millions are suffering; it's absurd that in supposedly the world's greatest economy, such horrible ranges of wealth and poverty exist. The gulf has never been wider, at the rate we're going, (45 million use foodstamps, a last-ditch nutrition program) perhaps it would be best to start learning German or Mandarin . . .

 

[Meatpie]

Lovely post Jv, piece of art I read it with pleasure. I am glad that people in the US are not that srupid, at least some, to see that what politicans are saying does not reflect the truth in 90% of cases, and yes it is a global phenomenon.

Unemployment in Europe is massive as well, millions are on welfare.

I fear my country is the next Egypt, if food prices continue to push up peope will take to the streets.

There comes a point when death by violence seems better than death by starvation. My parents are stockpiling food in the basement.

Shame as there is no war but prices are definately on the rise here and everyone is nervous as to where this is leading as salaries are frozen, retirement age has been pushed to nearly 70 for men!

 

[JValdez]

Thanx very much--here's the thing--history never repeats, but it most certainly does rhyme . . . will we see another Weimar Republic situation? Somewhere globally is very likely-- hmmmmmmmmm . . . I am shocked that your parents are stockpiling; I had assumed it was a US thing . . . so some Euros do understand the supply chain . . . people here are stockpiling food/weapons/materiel for what's next and also securing remote compounds to relocate to when the SHTF. (Shit hits the fan) Let's just say in my case that I drive a heavy-duty diesel truck with an amazing range and am wrapping my own plans . . . those who do not prepare will be BBQ'd; hunger and privation are obvious even in this country! I honestly think that we will look upon these troubled times as "the good old days"; & I truly do urge CDG guys to ponder what is going on around them & do the right thing. No one will take care of you as well as you can care for yourself!

 

[ArrowMan]

Very interesting discussion. Valdez ... you paint a most bleak painting of the USA and the world. You appear to have a perspective to "get yours while you can" and "head for the bunker." Well, IF we all did that, we would really be totally sunk, I do concur.

Rather than "run for the bunker" that we build for our Own Selves, what about being a part of The Change ... such as millions of Egyptians have done these past few weeks? IF they had just run for cover into their own caves, they would STILL have a ruthless dictator in power over there, few human rights and near absolute darkness.

YET there were those brave persons who said "ENOUGH" .. "we LOVE Egypt and WE are going to CHANGE IT for the BETTER ! " Now while there is still much work ahead, the Egyptian people by the thousands, inspired by a brave and courageous few...have a real chance for a better day tomorrow. They do not have to live "in a bunker" but rather come out into the Dawn of a New Day.

I am curious ... do you vote in elections in the USA? Do you get out and work for positive change in your community rather than decry the status quo and do little other than plan for life in a bunker?

A bunker mentality is NO LIFE at all. Choose hope, choose LIGHT .. make the change, fight back, be part of building a better tomorrow and a better today. Do not let Them defeat you .. no time in human history has EVER been easy, yet mankind slogs away and prevails still.

As the visionary United States Senator Robert F. Kennedy (and younger brother of President John F. Kennedy) once said ...
"some men see things as they are and say why. I dream things that never were and say why not.'"

We are not sunk yet, in these United States of America or on Planet Earth, not by a long shot. For humanity continues to dream the dream and say "why not" .. and then make that dream have legs to MAKE a better tomorrow.

Man rejected The Cowering Dark Cave milleneums ago...for the Strengthening Renewing Sunlight is so much better.

 

[JValdez]

Thank you for your perspective Arrow; yes, i do vote, am an agent for change in my hometown, etc. I appreciate your literally shedding light on a very complex and multifaceted situation. Everyone is on a journey, some are at different stages. From my point of view, it has to do more with what an individual has experienced that causes him to act than anything else. I won't take it any further than that other than to say that I am heartbroken over a country I no longer recognize. Again, it depends on your perspective & where you've been and what you've experienced. In my frequent international travels, I have become aware that the rest of the world is watching us, depending on us, waiting for us to change, to step up to the plate. It seems to a lot of the rest of the world that "the lights are on, but nobody's at home". Its not 1957 any longer. We've been to the moon, built the freeway system, (formerly) had the greatest economy in the world. We produce nothing tangible. Steel mills, most heavy industry have moved offshore. Research and development is not centered here. This country is a nation of paper-pushers, with a busy service sector. Paper pushers do not drill for oil, plant crops, build great architectural wonders, or scientifically innovate. The heart and soul has been hollowed out and offshored. We educate foreign scientists who then return to their own country and produce there. For God's sake, even the most basic of service industries has been outsourced, the call center. When is the last time you phoned an American firm and spoke to an American? I will be the last to let our flag get trampled; you may be sure of that. I do hold the Kennedy's et al in high esteem; however, we've entered a different era & there are serious and difficult choices to make. I, as most of the world, applaud our brothers & sisters in Egypt that have to this point forced change. However, the country remains in limbo and the military is in charge; it does remind one of Rahm's famous quotation, "Never let a good crisis go to waste". I also applaud your optimism and recognize your forward-looking thinking and of course support your efforts for positive change. I do want to also state that we should not let this get into a political pissing match in deference to the majority in CDG who do not live in the US. Think of this way, Arrow--the eternal yin and yang--one always balances the other . . . and we can agree to disagree!

 

[ArrowMan]

Hey Valdez ...

Thanks for the most articulate and thought provoking response. I do so appreciate it.
I find nothing with which to disagree in what you so succinctly and masterfully said. How true, the United States mostly has become a place of computer oriented office cubicles with Brave New World bosses, everything on a timer, clones not humans. Skyscapers and vast mega-buildings here in Chicago filled with mostly clones who dress mostly alike, look mostly alike and talk mostly alike. In technoMicroSoft dialect, just so damn mind-numbing and soul-wrenching.

Then most of the rest of the United States is "service industries." Yeah, burgers, fast-foot restaurants, retail stores, hotels, fast oil lubes, etc etc etc .. so much NOW and
delivered with a plastic smile and an forced "have a good day !!"

That's FOR the jobs that are here .. yeah, those Call Centers where I cannot understand the dude at the other end every time my computer goes south ... British dialects but not Brits, same voice, "how are you today, sir? are you having a good day, sir ? what seems to be the problem, sooo sorry to hear that, what is your contract number/client account number, SIR ?" SHEESH !!

I am encouraged to hear that you vote, that you are invovled and that really have not given up at all on The American Dream. It is hard, that is why we need each other .. and this Egyptian Revolution is a reminder of that .. and as Robert Kennedy also said (most warmed by your deep affection of The Kennedy Family) ...

"The sharpest criticism often goes hand in hand with the deepest idealism and love of country"

and ​

"It is from numberless diverse acts of courage and belief that human history is shaped. Each time a man stands up for an ideal, or acts to improve the lot of others, or strikes out against injustice, he sends forth a tiny ripple of hope, and crossing each other from a million different centers of energy and daring, those ripples build a current that can sweep down the mightiest walls of oppression and resistance."

Such is my philosophy, too .. and that's why I continue to "fight the good fight." Along with you and tens of thousands of others across this globe, most recently now in Egypt.

Keep the Fatih, my friend.
Keep the Faith.​

 

[JValdez]

Props Arrow--thanx!

 

[feettartar]

glad some on here are up on things - there's only one way this is all going to end. remember how the U.S. got started in the first place - by rich bastard landowners in england who fled there to escape getting taxedby the king - the rich sstarted this country and from the start made the rules that ensured the rich would always get richer.
200 years later, you now have what you've got. - they make more money by just printing it!

 

[spacemonk]

I am not going to talk about IMF and this gentleman. No. I will keep my character....