The World Crisis: Worst Yet to Come

Dr. Michael LaitmanIn the News (from Bloomberg): “The worst may be yet to come in the global financial crisis as the central bank spending that kept defaults low runs out, according to Deutsche Bank AG. (DBK).

“‘If these implied defaults come vaguely close to being realised then the next five years of corporate and financial defaults could easily be worse than the last five relatively calm years,’ the analysts in London said. ‘Much may eventually depend on how much money-printing can be tolerated as we are very close to being maxed out fiscally.’

“Default rates stayed in line with historical norms between 2007 and 2011 because of the ‘unprecedented intervention’ of European and U.S. policy makers, the analysts wrote in the report yesterday.

“Although defaults have been low, recoveries are falling because the public spending that kept non-payments down has failed to spur economic growth, according to the analysts.

“‘The LTROs [long-term refinancing operations] gave us some respite but they don’t appear to have taken the problem away,’ Burns said in a phone interview. ‘At the moment there are no more LTROs on the table.’”

My Comment: Will we really fail to convey to the analysts an opportunity to correct the global economy through changing the relationships in society? How much suffering do people have to go through so that political and financial authorities understand that the only opportunity to correct the crisis is through social relations? The vast majority of scientists talk about it, but as usual, the government doesn’t want to listen and acts in their narrow egoism.

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The Crisis Is Just Beginning
The Development Of The Global Crisis

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