US on the path of Japan’s stagflation of 18 years ago, says Nobel Prize

Wednesday, November 24th 2010 - 20:55 UTC

Full article 4 comments

Economics 2008 Nobel Prize Paul Krugman said the United States is heading along a path of stagnation and deflation similar to that of Japan 18 years ago given the critical economic situation and the uncertain political scenario following the recent mid term elections that brought to Congress diehard Republicans. Read full article

Comments

Disclaimer & comment rules

xbarilox
Now you have to suck your own people's blood.

“This economic slowdown, this depression can continue for a long time…It’s a crisis of the North Atlantic, of United States and Western Europe”, he added.” Yes, and so they need to eat, that's why our country will receive instructions from the same people who have done all those wrong deeds in those countries.
Nov 24th, 2010 - 09:19 pm - Link - Report abuse 0
-+
polacandino
“Now you have to suck your own people's blood.”.......An interesting metaphor, perhaps worth exploring.

The North Atlantic countries have fattened up their populations at the expense of the rest of the world for over 50 years running now. The straw they used to suck their neighbors dry is the international financial system, now teetering on the brink of collapse. As the Euro-American oligarchy begins the process of rendering their own populations to continue feeding the beast, South America and Argentina in particular should be warier than ever.
The best protection against further ravages by our northern neighbors is to stay out of their financial system as much as possible, especially in the realm of debt. The Kirchner method, re-negotiating and restructuring old debt on our own terms, is a partial and imperfect solution. Once the IMF , the Club of Paris, all the various banks and even the vulture funds have been satisfied, there will be a temptation to open Argentina back up to the flow of credit from the north. That credit is the straw that sucks everyone dry. The little bits of cash that come down are just backwash as the major movement is always upward toward the mouth of the beast. Argentina should complete the process of settling its old debts but put the brakes on any plans for new ones. Debt is the strongest set of chains that slavery has ever employed.
Nov 25th, 2010 - 11:55 am - Link - Report abuse 0
-+
jerry
polacandino you are correct - I am no economist, but it is easy to see that people of the United States have been living on too much credit for years. The bubble finally burst!
Nov 25th, 2010 - 03:29 pm - Link - Report abuse 0
-+
rylang23
As an American (who is moving to Uruguay) I can attest to the over consumption here. I can debate my friends until I am blue in the face and they still cling to the misconception that “everything will return to normal”, as it that will be a good thing. It is terribly sad to watch.

I completely agree with #2 Polacandino above. Steer clear of the IMF, World Bank, et al. Form a strong mutual defense pact in the model of NATO (the Defense ministers' meetings in Bolivia this week), and include Central America. Develop mutually favorable economic relationships within South and Central America. Build trade relationships with Africa (i.e. - Lula's remarks this week) and Asia. Allow “the beast” to destroy itself, but never take your eyes off of it.
Nov 25th, 2010 - 05:46 pm - Link - Report abuse 0
-+

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!