IMF Chief Says Global Recession Caused by Ghosts….
February 3, 2011
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Posted by Michael S. Langston
Ok…. so not really, but what he stated isn’t too far off as ghosts are just as factual as the “imbalances” he claims are responsible the global recession.
Strauss-Kahn,_Dominique_(official_portrait_2008)
So what did he say? Well, as usual, his improvable opinion, has to wrapped up in provable facts; the “global imbalance” (whole thing here via International Business Times):
…while the recovery is underway, it is not the recovery we wanted. It is a recovery beset by tensions and strains—which could even sow the seeds of the next crisis.
True. Not only true, but also the reason why Egypt can’t be obviously predicted, as even the protesters are fighting amongst themselves.
Why?
Because the protests were born out of economic conditions and not a desire for freedom or Sharia Law. This is why you can see the same unrest in Yemen, Jordan, the Sudan, and other countries.
This isn’t to say that a small faction, even a weak faction in Egypt like the Muslim Brotherhood, could never end up in charge. They could. They could use the fractured protesters against themselves towards their own aims and possibly turn Egypt into an Islamic state much like Iran.
This is a real fear. & combine this possibility with two major changes coming to the Middle East:
1. Iran getting *nuclear weapons with little more than talk from the international community; demonstrating they believe they are in a comfortable position of strength.
*(in 2015 or 2012, whether you believe public reports from Israel or the UK respectively)
2. *Possible withdrawal of US forces from Iraq, leaving Iran very strong militarily. They will immediately become the largest and most capable military force than all others in the region (great article via Stratfor).
*(Iraq doesn’t wish to be controlled by Iran anymore than the US wants this to happen. So it’s possible the Iraqi parliament votes to keep US troops in country for insurance.)
People are naturally worried. Either one of these alone is reason enough to fear instable states might flow towards Iran’s ideology, but when combined with everything else, concern is warranted.
The media of course has done what they do best. Put up a false dichotomy by breaking this into only two sides; Egypt is becoming either an Islamist State or a Free Paradise. The facts on the ground don’t support any particular conclusion at this time, but it’s tougher to write about that.
Just remember when reading the press reports that just a few short years ago most of these people were telling all of us how great Iran would become after the Green Revolution…. but I digress.
Our IMF Chief continues, using the factual and obvious instability in many countries, by warning of global imbalances, specifically (speech cont’d):
Growth in economies with large external deficits, like the U.S., is still being driven by domestic demand. And growth in economies with large external surpluses, like China and Germany, is still being powered by exports. As the IMF warned in the years leading up to the crisis—and as the G-20 has emphasized—these global imbalances….
Which is another fact. There are trade imbalances between many countries with respects to China and Germany. But then his facts stop, even though his words do not. (more…)
Categories: Critical Thinking, Economics, International, Politics
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Tags: Dominique Strauss-Kahn, Economics, Egypt, Free Trade, Imbalances, IMF, Inequality, International, Iran, Iraq, Islamists, Journalism, middle east, Muslim Brotherhood, Politics, The Great Recession
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