The IMF thinks there is a risk of a new global financial crisis. These things do, however, require tipping points. Here are tow potential such tipping points in consecutive headlines in an FT email this afternoon:
Oil price rises and dollar interest rate rises, simultaneously. That's a recipe for crisis in large parts of the world's economy. If it's not the debt that will tip us over (as the IMF think) something else will.
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Frightening.
And BREXIT as well.
There is going to be a banquet of consequences it seems very soon.
A more immediate catalyst for trouble is the austerity the EU is forcing on Italy.. the EU see Italy as another Greece. The EU is bloody clueless in my opinion.,
https://www.google.co.uk/amp/s/www.independent.co.uk/voices/europe-italy-eurozone-debt-crisis-salvini-on-the-brink-economic-crisis-not-new-a8566416.html%3famp
This article captures the situation perfectly. The EU as a loose body that promotes trade in the region and removes hostilities is a wonderful idea.,, the EU in its creation of a federal Europe with monetary and fiscal unity is disasterous..the whole thing could implode before Brexit
I no longer believe in economics of any kind. My situation is akin to discovering we are bewitched by language – how do we now use words at all? Oil and interest rates rising may cause a crash in a debt-laden economy? I could set that as a sum for brightish 8 year-olds. Really obvious questions are not heard – such as what kind of idiot parasite can’t manage a surplus better than this? We need some really ordinary language to replace religious numptynomics. Fred Soddy and even BoE fusties can be found worrying about private banks creating money in the 1920’s, Veblen about financial class decision making rather than engineering decisions. We are running a century late.
Veblen was an economist….