The Greatest Depression Has Only Begun

Thursday, June 2, 2011
By Paul Martin

Global Research
June 2, 2011

The greatest depression in human history is still in its starting stages. What the media and many officials often refer to as the “hangover” from the global financial crisis is in fact the end of the beginning. Originating in 2008, the global economic crisis took the world by storm: banks collapsed, the “too big to fail” became bigger by consolidating the rest, governments bailed out their financial industries, masses of people lost their jobs, the ‘developing’ world was plunged into a deep systemic crisis, food prices rose, which in time spurred social unrest; and the Western nations that took on the bad debts of the big banks are on the precipice of a great global debt crisis, originating in Europe, hitting Greece and Spain, but destined to consume the industrialized world itself. Though many claim that we are in a “recovery,” things could not be further from the truth.

As the mainstream media is finally catching on to the reality of the mirage of the so-called “recovery”, reports are surfacing about a dire global economic situation:

“Evidence of a deterioration of global manufacturing growth and renewed weakness in job creation in the United States emerged Wednesday, two reversals that have markets bracing for an economic pause, or worse… Add to that a daunting list of aggravating factors: the continued implosion of the U.S. housing market, an outbreak of worldwide risk aversion, high crude-oil and gas prices pinching consumer demand, further tightening in China and other emerging-market economies, stock market losses, lack of credit growth, the looming end to the Fed’s monetary stimulus, weak business capital spending, and the still-unfolding sovereign debt crisis in Europe.”

And now top financial experts are warning of a new financial crisis altogether, since the monstrous derivatives market that played such a nefarious role in the preceding crisis has not been altered, nor have its systemic risks been addressed. The derivatives market – essentially a fictional electronic market of high-stakes gambling – has a value ten times that of the entire global gross national product of the world’s countries combined. This market is dominated by hedge funds and the “too big to fail” banks, who in fact created the derivatives trading schemes. As one leading hedge fund manager recently stated, “There is definitely going to be another financial crisis around the corner… because we haven’t solved any of the things that caused the previous crisis.” The market for derivatives is somewhere in the realm of $600 trillion.

The Rest…HERE

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