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Al-Qaeda Weighs In On World Economic Crisis

November 29th, 2008 Comments off

Ayamn al-Zawahiri, the number 2 leader of Al-Qaida, spoke in a new video, where he added his own commentary on the global economic crisis. He specifically called on the American people to convert to Islam, which he claimed would enable them to recover from the economic and financial meltdown that has afflicted the United States and much of the world. According to al-Zawahiri, American actions since September. 11, 2001 have emptied the U.S. Treasury.

Ayman al-Zawahiri, whose 80-minute recording touched on a multitude of subjects, also lashed out at Afghanistan’s government and said any U.S. gains in Iraq will be temporary.

In his 80 minute video appearance, al-Zawahiri claimed that the roots of the U.S. and global economic crisis were in U.S. actions precipitated by 9/11.”The American economy was afflicted by a downturn and loss of investor confidence in the market following the events of September. 11,” said Al-Qaeda’s number 2.

“The modern economy has been destroyed by the strikes of the mujahedeen (in Iraq and Afghanistan) and the usury,” said Al-Zawahiri, who then called on the American people to embrace the Muslim faith, which he suggested would enable them, “to live a life free of greed, exploitation and forbidden wealth.” It is unclear if Al-Qaeda believes many Americans will accept its economic prescription for solving the financial crisis.

 

U.S. Economy In Free-Fall

November 28th, 2008 Comments off

As the American people feast on their Thanksgiving turkeys, there will be little to cheer about this holiday as the global economy in general, and the U.S. economy in particular, descend into the abyss. The latest economic data portents to a dismal future, with consumption spending plummeting, along with the continued and accelerating collapse of new homes sales to record lows amid falling consumer confidence. The unemployment rate is rising rapidly, one manifestation being the high initial claims for unemployment benefits. Simultaneously with all the other bad news, orders for durable goods such as cars, home appliances and factory equipment continues to fall through the floor.

Though the current economic news seems dismal enough, it is clear to many economists that the worst is yet to come. The global macro-economic data that will be forthcoming will define a staggering global economic recession that will defy policy prescriptions being enacted by panicky governments.

On January 20th, 2009, Barack Obama will be inaugurated as the 44th President of the United States. When Obama takes office, he will likely inherit from George W. Bush an enfeebled economy that is contracting at a rate in excess of 5%. The fourth quarter GDP data will certainly make dismal reading, as it will undoubtedly chronicle an economy that is in free-fall.

Global Economic Crisis

November 28th, 2008 Comments off

What began as a global financial crisis has truly become a virulent global economic crisis. The credit crunch that has clogged the arteries of the world financial system has now caused an economic meltdown of global proportions. No economy, big or small, developed or undeveloped is being spread.

The danger confronting policy makers and citizens as the international community and individual sovereign nations are passing through uncharted but stormy waters. Parallels are already being drawn to the Great Depression of the 1930s. More dire, several very learned financial experts and economists have warned that what the world confronts is a mega-economic crisis that may even dwarf the Great Depression.

Recently, even China’s high growth rate has receded. It was hoped at one time that the Chinese economy could rescue the planet from a worldwide recession. scenario is no longer operative. The Eurozone, the U.K. and the U.S. are now experiencing negative growth in their GDP. A terrifying global economic crisis is about to inflict staggering pain throughout the globalized, interconnected planet.