According to Heiner Flassbeck, former head of UNCTAD, there are many factors pointing to a convergence in a normal cyclical downturn, deepening recession in Europe, complicated by potential hard Brexit–With host Paul Jay
Subscribe to our page and support our work at https://therealnews.com/donate.
** (Disclaimer: This video content is intended for educational and informational purposes only) **
how overvalued is the stock market? that isn't a small thing, it wasn't just foreclosure frauding 7mil out of their homes that crashed. the overvalued stock market and bribed s&p/moodys rating agencies helped. really the overvalued stock market is the big piece.
the idea that gov't debt doesn't matter much is what has gotten the world in $250 trillion debt.
Western civilisation has 20 years at best
Wages for the bottom 70% of workers across the vast majority of advanced nations are lower today than they were for similar positions 40 years ago once you adjust for inflation. I wish these people would stop talking about a bloody recovery, for workers, there has not been one. Yes unemployment is down but when you classify those working at least 1 hour per fortnight as "employed" of course this pile of shit is going to look like it should smell of roses.
Shortest description of post-crisis economics in general, on the Apple Inc example, given by Mark Blyth: "Apple sits on the largest pile of cash of any corporation in the world, they think it's about a quarter of a trillion dollars. Rather than using that, they borrowed money because it was so cheap [low interest rates], issued their own bonds which earns them a premium, on top of that took the cash from that and then bought their own shares back to boost the value of the stock so they could reward themselves even more money, and we booked that as investment, so they don't pay any taxes. Does anyone else want to call that bullshit?". Now, i think this is pro-cyclical, and that if the stock market fails, there no other growth, since apple shows us, essentially all of the meager 2.2% US GDP growth is probably carried mostly by this phenomenon + mergers. But mergers also don't really create anything. They improve efficiency on the one hand, but considering that it is leading to monopolies, its probably true that it will reduce efficiency even more in the medium term, plus short term unemployment, plus Jordan Brennan shows that mergers lead to less production investment (logically, if you buy Monsanto, you are out of cash for a while to invest…). There, just a few extra points.
The next bubble to burst will be the gluttonous greedy rich. Unless they fertilize the world with there ( our ) wealth they have stolen.
So when country goes in debt till neck and borrowing money which will never return it is ok, this is not dangerous, but when country do not want to become debt slave, and is cautious in indebting this is strange, funny, dangerous, big problem. Big cocaine addict who wears suit of 10000 USD, taking 300 USD of cocaine daily, go to expensive dinners and running blindly into speculative investment of dozens of millions, taking more and more new credits every day while paying only part of his duties – he is Good!! Perfect!! Men who know exactly how many he invested in what, when it would return and how, he calculating risks and profits, paying all his debts, bills and salaries to his employees. He is funny? Dumb?
Please, find another expert.
It seems that the whole world is sick with a toxic disease. There are multiple issues creating the disease. But it seems to be a perfect storm brewing.
Paul Jay. Everybody is blaming it on neo-liberalism, and nobody is talking of nationalism, without nationalism people would be able to deploy easily anywhere and find jobs, there would be more opportunity. The nationalist paradigm is in great part, IMO, much to blame, more yet coupled with neo-liberalism, one can easily get to the bottom!
Thanks Paul Jay!
Thanks The Real News Network!
The bankers are still controlling all the world's economies for profit. They don't care if they cause wars, that's just more money in their pockets.
US economic charts decoupled right around Christmas time… We are 4mths into this- but don't expect economists to mention this for another 2mths (they wait 2 quarters to report trends)…
Psst!!!! Cliiiiimate Chaaange…
The bankers can do anything they want to us. They are literally in control of everything. Just another way to control us. When this happens we need to establish a state bank.
Yeah right… debt is not a problem yet… Then why can't countries, private sector and households take more loans, even though interests are near zero? Banks are struggling to get money into circulation and can't make profits (they profit from loan interests).
The very fact that they can't take loans, was solved temporarily with the quantitative easings in both the USA and EU. After the QEs there was some growth reported in both regions, when money in the system increased. It was still credit money, but it pushed the problems further back.
The US has student loan debt, credit card debt, housing loan debt and an seriously inflated stock market. That's more of a problem than this guy leads on. We are in a bigger bubble than before the last recession.
Fascism is alive and well and has it's hands on the levers of power in both Europe and the US…
Bring back the beard!
One thing ALL ‘economists’ fail to mention: one man’s inflation in another man’s deflation.
Come on people! AMERICA has been in a recession since ‘08. Subtract real inflation from GNP and growth has been negative.
Every 4 to 7 years we have the same conversation. Market Shmarket…?! Change the stupid system.
I don't think this guy knows what he's talking about. Massive borrowing to stimulate the economy is a short term fix to a long term problem. What a moronic solution.
Some debt is good, the right mix is best. But over-reliance on increasing mountains of government debt to solve growth problems? What about long term stability? That's just kicking the can down the road, which I guess makes sense, because when the markers are called, this guy won't be around to have to answer for it.
When it comes time and the U.S. is unable or even unwilling to repay its debt, BRIC countries that are growing now will invest in the EU and not the U.S. But this may be generations from now.
Call someone that understands economy not this quack. He has no understanding what ai ever.
Lunatics are running the asylum! The world is out of balance, Inhumanity has replaced decency. Millions of people are starving while the rich are dieting? Thousands are homeless while the rich own 7 houses. We will eat each other soon 🙂
Believe it or not – Astrology predicts world wide Depression then Revolution.
the educated zombies that are disillusioned and uninformed and misinformed and apathetic make it possible for the elitists known as the oligarchs and kleptocrats to thrive in a manner that few people eventually benefit – 20:12 hours Pacific Standard Time on Wednesday, 3 April 2019
They're delaying the crash. We're headed for a Great Depression type collapse. Global debt hovers around $500 trillion dollars. The US NATIONAL debt hovers around $250 trillion dollars
What does Britain's responsibility to the EU consist in? Aren't they interdependent, and any agreement should not disadvantage either side? The EU has become elitist and punitive and there are more than a few countries disenchanted with it. To work at all, there have to be safeguards for smaller countries – ask Greece about that. This guest is the usual neoliberal-booster economist – and no surprises there.
I can only plant a seed: You and God must make it grow and He gives everyone free will to Believe anything they want.
Zechariah 14, V2: For I will gather all nations against Jerusalem to battle; and the city shall be taken, and the houses rifled, and the women ravished; and half of the city shall go forth into captivity, and the residue of the people shall not be cut off from the city.
Google EMP, Electro Magnetic Pulse. Electrical (computers, cars, electricity, etc) will not work.
http://www.achildofgod777.com (Free)
A Child of the Living God
Spiritual Completeness (Free)
Spiritual Completeness
Super User
Parable of the Fig Tree when summer is near and arrival of antichrist possibly in 2018/2019 followed by…
All government officials who supported BREXIT should be forced to resign, and never allowed to hold public office, at any level, ever again. How did they think they were going to get a better deal in negotiations with the EU after they behaved so badly? BRESXITeers are all Morons!
You can't borrow your way to prosperity. Stop fooling around and start a different strategy. Rebuild different cities and make each home as autonomous as possible.
EU is stupid and highly criminal – but never Farage – he is one of the most competent politicians!!! In this you are absolutely wrong!!!
Swiss in Paraguay
So few understand that government debt is really capitalization of the economy and nothing like private debt. Problem in Europe is there is no monetary sovereignty.
Mr. Flassbeck is well worth your attention. He has a thorough understanding of the macroeconomy – quite a rare find.
#LearnMMT
There is always a disaster around the corner with a flawed capitalist system.
I used to listen to Flassbeck, but he is a diehard Keynesianist (necolassical synthesis), which btw has only little to do with what Keynes has written….Flassbeck-Economics lmao
Flassbeck is full of crap , and is pushing MMT as if it had any credibility . Paul Jay would do you keep having these frauds on the program, as it tarnishes any of the legit topics or people that have on at other times.
I'm German and my country is so stupid we need huge investment into infrastructure and money is so cheap atm but my government is not spending money they are so proud
of there "Schwarze Null" (black zero) meaning not taking new dept meanwhile our schools are rooting away bridges are crumbling, internet is slower then in many eastern Europe country's, it is crazy.
recession (the pay day) comes when democrats win 2020 – never before
Is this the catalyst that will cause BTC and Gold to skyrocket?
The stock market crashing would be a disaster for the millions of Americans that invest there in the hopes of retiring at a reasonable age while living comfortably through their golden years. How would this not also be a disaster for the economy?!
So you can see it after you hear it: https://www.forbes.com/sites/leonlabrecque/2019/03/29/recessions-and-yield-curve-inversion-what-does-it-mean/
The national debt is nothing more than an accounting of how many net dollars have been spent into the private sector that has not yet been taxed out of the private sector.
Learn MMT,
It never make sense when people started touting "the economy has recovered!". Recovered for whom, I wonder? Because I can assure you that everyone I know of are actually in a worse state than they were 10 years ago.
You can look at the current crisis from a Neo-Liberal lens but I feel looking at the crisis from a Marxian Capital lens gives us a better critique of the economy. Industrial Capital business cycles consisted of employment increasing, wages increasing, inflation increasing, Feds raising their funding rates which causes industry to slow down. Government stepping in to provide a social safety net that spurs spending which creates a new cycle. In 1970 that model shifted to a Finance driven Credit cycle; Finance Capitalism replaced Industrial Capitalism in the West in the 1970's. Finance Capitalism's growth model is deception, fraud and greed and that defines the current crisis. One of the deceptions of Finance Capitalism is that the world can follow the Japanese model of the Government creating money and the Central Bank buying the money. This deception only works when all Central Banks collude together allowing Japan and Germany to provide high quality cheap goods for the world. The greed is supplying the world with cheap low interest US Dollar denominated money and after a point have the Fed raise their funding rates which bankrupts entities and assets are foreclosed upon. The fraud is the tax reform bill, the no prosecution of Wall Street crooks and the MAGA narrative.
The Russia-Gate narrative didn't gain traction in the UK so now the plan B is to paint the Labour party as anti-Semitic. Brexit has created a contradiction that is contributing to the current crisis. Democracy Now recently did an interview with a lady that said the UK is looking into who financed the "Leave" initiative. Finance Capital gave us Brexit and Trump; Mercer, Face Book, the donor class of extreme Right wing groups in the US, UK and Israel financed the current crisis and In the US the Russia-Gate narrative is the deception from that crisis. If we have full employment why isn't inflation kicking in to end this cycle. The demographics have changed in the world and Finance Capital is making it worse. Look at employment and the growth sector is the 55 year old plus segment; they aren't retiring because they can't live at the standards they are used to. This is the true MAGA base; the 39.9% that refuse to let go of the past. The 25 year old plus are the reason there is no inflation; this is the age group that start jobs at a certain wage get training and move to a higher paying job but they can't find work.
Finance Capital wanted Jerome Powell as Fed Chair to raise the Feds funding rates (which Finance likes to call normalization) so that assets could be foreclosed upon. Problem is that most of Industry has been using the low interest money to buy back stocks which has fuel the Stock Market highs. Raising rates to 2.5% started signaling that industry was going bankrupt; this is why the Feds are talking about lowering rates and adding to their balance sheets (buying industry debt of the most favored Enterprises). This is as far as Finance Capital can go; printing money to buy it back is nothing more than a snake eating its own tail. Finance Capital is an interconnected synergy with all parties acting in coordination. Having a petty crook, racist, moron as a part of the synergy defines our current crisis.This is late stage Capitalism and late stage Anglo-American Empire; they both are metamorphosing whether we accept it or not.