Bona Fide Eurozone Crisis
Concealing the gravity of the crisis will only work so long.
by Stephen Lendman
Economist Jack Rasmus appears regularly on the Progressive Radio News Hour. He calls Eurozone conditions today "a bona fide crisis."
It's threefold, he says. What first affected sovereign debt became a banking crisis. Both reflect two sides of the same coin. Regional recession followed. All economic sectors are affected. They feed off and exacerbate each other.
Policy measures tried so far failed. Fundamental change is key. Without it, expect Eurozone countries to slide deeper into debt. A banking crash will follow. Protracted recessions will affect other countries.
Britain's sinking deeper into double-dip trouble. All 27 EU countries are affected. So are others globally. Visible slowing affects America, China, India, Brazil, and other more vulnerable states.
Manufacturing began contracting in 2011. In 2012, it gained momentum. Eurozone countries are the epicenter of what's spreading globally.