[lbo-talk] Mike Whitney, The Road to Recession

dredmond at efn.org dredmond at efn.org
Wed May 19 14:50:13 PDT 2010


On Wed, May 19, 2010 12:24 pm, Chuck Grimes forwarded:


> [From The Road to Recession, Mike Whitney}:
>
> http://www.counterpunch.org/
>
> What does that tell us? It tells us that the whole "recovery" meme is a
> fraud.

Tagging on to what Doug said, all of the recovery action has been happening in the semi-periphery, not the US or EU. The neolib bubble machine is still busted, but record government deficit spending has prevented a complete meltdown, so far. The question is, what will power the recovery.

My money, if I had money, would be on the BRICs. Whitney quotes from Hugh Kendry, who thinks China is a bubble, but I see no evidence to support this view -- China has a state-owned banking system, does not have a convertible currency, and is spending its cash on infrastructure for its roughly 660 or so cities, rather than CDOs for its elite bankers.

-- DRR



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