If Spain and Italy Go Down and the Euro Crumbles, then the World Economy Will See the Much-Vaunted Double Dip Second Phase of this Huge Transfer of Wealth Kicking In
Wed Aug 10 2011
All this week stock markets have been in free-fall across
the capitalist world.
With “economic confidence” lost in two of Europe’s biggest
economies, (Spain and Italy) a second devastating world
recession is virtually inevitable if they fall.
HERE IS THE list of_countries_with_blood_in_their_streets,
countries with the highest External Debt-to-GDP percentage ratios, the direct
cause of the unrest, NOT “disaffected hooligans”.
America is number eleven on this list after Europe and its most
vulnerable PIIG countries.
America’s credit rating was punished by S&P because US politicians failed to reach an adequate
solution to the country’s massive debt woes which are nearing 100% of GDP. Investors reacted
by buying the Japanese yen– a country whose sovereign debt rating is two steps below the US,
and at 220% of GDP, over twice as indebted!
“Although the share-price plunge does not yet come close to the infamous
Wall Street Crash of 1929, this week’s market mayhem is a chilling reminder of the
sheer fragility of the capitalist system”… and of how little we understand about
who controls it and how it is conrolled.