World economy

I am getting very seriously worried. But then you should know - before you read any further - that I am a solid pessimist.

The crisis in the financial markets is deepening from day to day, and even the biggest American banks are feeling the stress and paying for their past excesses. Governments and their central banks are starting to see the seriousness of the situation, without necessarily admitting it, and are clueless as to what to do about it. Apparently, all they can think of is digging new holes to fill older ones. And the holes are getting bigger and bigger.

I am afraid that this may be the beginning of the worst episode since the world shattering crisis of the thirties and that we all are going to pay a very heavy price for the excesses of the totally uncontrolled world financial system. Not only is it uncontrolled, it now is finally out of control.

Confidence is gone and I see no authority able to restore it, most certainly not the totally discredited US government or any of the international financial institutes who had so much to say about how emerging economies had to manage their problems.

We are gliding in a serious dip - I won't use the word abyss for now.

And of course, it is the average Joe who is going to pay, because the moguls always find a way or two to save their day. Millions of Joe's like me worked hard to provide for a carefree old day, but rapacious bankers and entrepreneurs decided otherwise.

And woe to Joe and Jane who still have to work to earn their living and to educate their children !

Depression ? Or rampaging inflation ? Both are lethal for Joe average.

Since I started this blog, I have been writing that we need another world economic system. Maybe this crisis, which in my view - and I most sincerely hope I am wrong - is only beginning, may be the detonator we need to start looking for alternative solutions.