It looks like you're using an Ad Blocker.
Please white-list or disable AboveTopSecret.com in your ad-blocking tool.
Some features of ATS will be disabled while you continue to use an ad-blocker.
“We’re in very serious danger. The world is in a depression in the Big Three of America, Europe and Japan, a mini-depression that we have not seen since the 1930s,” he said, speaking at the Lindau conference, where half the world’s Nobel economist are gathered on one tiny island with cobbled streets looking across Lake Constance to the Alps....
His prescription for America’s ill today is to slash corporation tax to 20pc (from an effective rate of 52pc, he says), and kill the entitlement behemoth. By the way, he blames the Fed for triggering the Lehman crisis by keeping money too tight in mid to late 2008. There is very little inflation risk now from QE because M1 money velocity has collapsed “by half” and is likely to stay there....
“We’re in the midst of a very big crisis because nothing has been done yet to convince the markets that there has been a fundamental change. To save Europe there has to be a move in the direction of shared government.”
“There is a tremendous problem in five or six countries of the eurozone. But the solution is not the end of the euro, because that creates more problems than it solves. There would be a tremendous run on the banking system, and countries that left would still have to deal with all their debts.”
Leading economists have slashed their forecasts for global growth ahead of a key meeting on Friday of the world's central bankers and policymakers.
UBS and Citi followed Morgan Stanley in lowering their outlook this year to 3.3pc and 3.2pc from 3.8pc and 3.7pc respectively. The world economy had been expected to grow at around 4pc just a few weeks ago.
The downgrades came as markets dipped on dwindling hopes that Ben Bernanke, chairman of the US Federal Reserve, would signal more stimulus in his speech on Friday at Jackson Hole, Wyoming.