- Posted September 29, 2013 by
The Corliss Group on Europe and US economy is sliding down to unavoidable catastrophe
There are five reasons for the world economic crisis and it cannot end happily. This is the opinion of our expert Marc Russe Ph.D., MBA Columbia University. He is the author of many books and he was the general manager of such transnational corporations as Carrefour, Aventis and Veolia for 20 years.
Marc Russe: Both the EC economy in general and the French economy in particular are feeling very bad. The US could hope for some escape but that country is also sliding down slowly to a catastrophe that seems unavoidable to me and that is rooted in today’s events.
So as to understand what is going on, I’d like to explain the five reasons for the crisis and then make a conclusion.
The growth of developing countries’ economic potential is absolutely natural. It is also obvious that we cannot restrain the expansion of. Fifty percent of goods manufactured in the world are provided by developing countries. It is also important to think about the China danger for Russia in particular because Russia has a long border on that country. In addition, we could face a certain spirit of revenge for onerous contracts with China. We should not forget about India either because India will soon demographically leave China behind, even though India is facing certain temporary problems.
As for dispelling myths, I must say that it is absolutely wrong to accuse banks of all evil. Actually, we only faced the fraud of US banks at the moment of the crisis. As a matter of fact, banks are nothing but scapegoats. Those who are blaming them actually cannot see the woods for the trees.
The five following factors can be considered the exceptional reasons for the crisis. The main one is the refusal to directly exchange dollars for gold. This was decided by President Nixon on the August 15, 1971. After that the economy started to get out of control. In 1980 it entered the period of world instability.
We should also remember that every month the Federal Reserve System generates $85 billion out of nothing for financing the US deficit, not to mention mortgage lending.
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