Global Economic Crisis

In the current issue of the Financial Times, columnist Martin Wolf provides a cogent and timely warning on the credit anomalies proliferating throughout the Eurozone that, in conjunction with feeble policy measures, are contributing to a scenario akin to the credit collapse that unleashed the most virulent stage of the Great Depression of the 1930s. In the column, he observes:

“One would expect feeble demand in such a world. The willingness to implement expansionary monetary policies and tolerate huge fiscal deficits has contained depression and even induced weak recoveries. Yet the fact that unprecedented monetary policies and huge fiscal deficits have not induced strong recoveries shows how powerful the forces depressing economies have been…. Before now, I had never really understood how the 1930s could happen. Now I do.”

In the wake of the unfolding financial and economic disasters unfolding in the Eurozone, the analysis offered by Martin Wolf is must reading for anyone concerned about the global economic crisis. The link to the entirety of Wolf’s piece in the Financial Times is here:

http://www.ft.com/cms/s/0/74f3017e-ac15-11e1-a8a0-00144feabdc0.html#ixzz1x6wGEWSR