WASHINGTON - A report released from a UN group calls the global economy "fragile" and urges action on trade, tax and debt policies to improve economic growth. The United Nations Conference on Trade and Development's (UNCTAD) annual "Trade and Development Report" notes rising debt and inequality levels. The report warns that current economic challenges may be more difficult to manage than the 2008 global financial crisis.
Financial parasitism and the rising war danger
By Nick Beams
24 September 2016
"Global growth remains at its lowest levels for any “recovery” in the post-war period, investment is far below where it was before the crisis, productivity has declined markedly, world trade is slowing and deflationary pressures have spread. In the words of the OECD, the world economy is in a “low-growth trap.”
"For the working class in all the major economies the past eight years have been characterised by stagnant or declining real wages, endless austerity programs which have cut social conditions—accompanied by the mantra “there is no money”—and the growth of social inequality to unprecedented levels.
"Far from bringing about economic “recovery,” the promotion of the very parasitism that led to the 2008 crash has now become de facto the official policy of the world’s major financial authorities.
"While the global economy has entered a period of “secular stagnation”—a term first developed in the 1930s to characterise a period of permanent low growth—US share markets have reached record levels and quantitative easing has created a bubble in global bond markets with the price of bonds so high that around $13 trillion worth are trading at negative yields."