bob vawter
Grassy Knoller
World Enters New Economic Crisis
Aug 5th 2010
A A RATING!!!
Stock markets have lost $6 TRILLION worldwide on Thurs and Friday, as a new period of economic instability is expected to last for weeks. Italian agreement to new austerity; and a positive jobs report in the US have slowed the fall but the Eurozone is reacting with alarm. $100 Billion was lost in Australia this week alone.
Markets are responding to three separate concerns: The US recovery which is stalling; over the eurozone sovereign debt crisis, which is not over; and to slowing growth in Asia. All three of these crisis will be deeply aggravated by an interruption of Asian oil supplies by conflict in the Persian Gulf during the coming regional Mideast war, expected in the coming months.Any disruption of Asian energy would generate a economic crisis in Asia that would bring down the tottering international economic structure. The world’s nations have topped off their strategic reserves in anticipation of the conflict, however that is not likely to be enough to prevent financial panic which will dramatically affect the markets.
This crisis will result in people demanding that strong measures be taken to resolve the problems, forcing the nations to give up some of their economic sovereignty to some type of world system; as well as a serious likelihood of a new international reserve currency to replace the US dollar.Financial crisis of this magnitude always result in political crisis and disruption. In this case the EU is especially vulnerable.
Aug 5th 2010
A A RATING!!!
Stock markets have lost $6 TRILLION worldwide on Thurs and Friday, as a new period of economic instability is expected to last for weeks. Italian agreement to new austerity; and a positive jobs report in the US have slowed the fall but the Eurozone is reacting with alarm. $100 Billion was lost in Australia this week alone.
Markets are responding to three separate concerns: The US recovery which is stalling; over the eurozone sovereign debt crisis, which is not over; and to slowing growth in Asia. All three of these crisis will be deeply aggravated by an interruption of Asian oil supplies by conflict in the Persian Gulf during the coming regional Mideast war, expected in the coming months.Any disruption of Asian energy would generate a economic crisis in Asia that would bring down the tottering international economic structure. The world’s nations have topped off their strategic reserves in anticipation of the conflict, however that is not likely to be enough to prevent financial panic which will dramatically affect the markets.
This crisis will result in people demanding that strong measures be taken to resolve the problems, forcing the nations to give up some of their economic sovereignty to some type of world system; as well as a serious likelihood of a new international reserve currency to replace the US dollar.Financial crisis of this magnitude always result in political crisis and disruption. In this case the EU is especially vulnerable.
