Global Fianancial Crisis

World Financial cheifs see no sign of an end to economic woes

Transcript:

THIS IS DEFCON 3 BY KT — I’M K-T MCFARLAND.

RECENTLY, THE WORLD’S FINANCIAL AND POLITICAL MOGULS HELD THEIR ANNUAL CONFAB AT DAVOS, SWITZERLAND…  TO DISCUSS THE GLOBAL FINANCIAL CRISIS.  ONE AFTER ANOTHER THEY TALKED ABOUT HOW BAD THINGS WERE IN THEIR COUNTRIES.  NOT ONE OF THEM SAW SIGNS IT WAS LEVELING OFF.

LAST MONTH– BUSINESS FAILURES AND MASS LAYOFFS TRIGGERED DEMONSTRATIONS IN FRANCE.

IN GREAT BRITAIN– MOST BANKS ARE BANKRUPT.. AND UNEMPLOYMENT IS RISING RAPIDLY. THE POUND IS FALLING.. AND SOME ECONOMISTS TALK IN HUSHED TONES THAT THEIR CURRENCY IS IN DANGER OF COLLAPSE.

IN CHINA, 20 MILLION PEOPLE ARE DUE TO LOSE THEIR JOBS, AND MORE THAN 100 MILLION PEOPLE COULD BE HOMELESS.

RUSSIA FACES A DOUBLE WHAMMY OF THE GLOBAL RECESSION AND MUCH LOWER OIL REVENUES.

MANY COUNTRIES ARE PROJECTING FLAT OR NEGATIVE GROWTH RATES.  FOR THE FIRST TIME IN ANYONE’S MEMORY, DEFLATION IS A DISTINCT POSSIBILITY.

WHILE THE WORLD’S LEADERS SEEMED IN AGREEMENT ABOUT WHO TO BLAME – AMERICA -  THEY COULDN’T AGREE  HOW TO TURN THINGS AROUND.

NO ONE KNOWS WHAT THE FUTURE HOLDS – BUT HISTORY SHOWS WHEN COUNTRIES GO THROUGH WRENCHING ECONOMIC CHANGE, SOCIAL UPHEAVAL USUALLY FOLLOWS.

IN GOOD TIMES, PEOPLE REVOLT AGAINST TOTALITARIAN GOVERNMENTS IN FAVOR OF DEMOCRATIC REFORMS.

IN BAD TIMES, THEY DO JUST THE OPPOSITE – AND TURN TO STRONG CENTRAL GOVERNMENTS – EVEN DICTATORSHIPS.

GERMANY AND ITALY TURNED TO FASCISM DURING THE DEPRESSION IN THE 1930’S.  CHINA BECAME COMMUNIST IN THE AFTERMATH OF WW II.

IT’S PROJECTED THAT BY THE END OF THIS YEAR, SOME 50 MILLION PEOPLE WORLDWIDE COULD LOSE THEIR JOBS AND 200 MILLION PEOPLE DRIFT INTO TOTAL POVERTY. THAT’S A SOCIAL TIME BOMB THAT WILL HAVE PROFOUND IMPLICATIONS NOT JUST FOR THOSE PEOPLE AND THEIR GOVERNMENTS, BUT FOR THE WORLD.

THAT’S DEFCON 3 BY KT AND I’M KT MCFARLAND