More andm ore gloomy news meets us this week with the news that the world growth figures have been downscaled and world capitalsim edges ever slowly towards another global depression set to dwarf the great depression of the 30's. This is a real crisis now and one we are not getting out of anytime soon.
Only yesterday the worst-case expectation was that the UK’s Gross Domestic Product – the key measure of growth – fell by 0.1% between October and December. But today’s official figure from the Office for National Statistics reveals that the UK economy actually shrank by 0.2% in the last quarter of 2011, and is heading for recession.
Accumulated UK government debt broke through the £1 trillion mark as a dual consequence of falling tax revenues, continued support for the financial sector and higher welfare bills as a result of soaring unemployment.
Despite the ConDem’s stated intention to reduce the country’s dependence on debt, its combined corporate, public and household debt has increased to 507% of GDP and the country remains where it was in the league table of the richer nations when the crisis broke in 2007/8 – right at the top.
The world's economy is "deeply into the danger zone" because of risks from the eurozone, the International Monetary Fund (IMF) has said.
The IMF predicts the global economy will grow by 3.25% in 2012, down from an earlier forecast of 4%.
The growth forecast for the UK economy has been cut to 0.6% from 1.6%.
But the eurozone is set for a "mild recession" in 2012, with GDP expected to shrink by 0.5%, compared with a previous forecast of 1.1% growth.
Not one of the capitalist leaders of teh ruling class know how to solve this crisis and prescribe more austerity to deal with this sinking us further and further into misery . While the rich get richer the poor get poorer. The contradictions and failings of world capitalism are becoming increasingly clear for all to see now.
What we marxists argued at the time of the 2008 financial crash and after there is no way out of this crisis as there is little fat on the bone left to play with. With china's economy slowing and having a knock on affect in South America and Africa where it had been investing heavily wil be scaled back leading to recessions and even longer term depressions in other parts of the world. No where will escape this i feel and unless this rotten system of greed over peoples needs is brought to a end where the wealth of the working class is expropriated for the benifits of the 1%.
It is time society was re organised and the worlds resources planned for the needs of the planet and its people which can all be met if wealth was shared out equally. In a socialist planned society