The package does little or nothing to reduce the unsustainable debt mountain or stimulate economic growth

"Consider the big picture: an east Asia of toppling currencies and bank insolvency: rising unemployment in Latin America’s largest economy (Brazil) and falling real wages throughout the region: stagnation and unemployment in Europe: a rapidly approaching limit to the capacity of US consumers to take on more...

FINANCE MINISTERS from the seven largest economies in the world met recently to debate how to revive the sick world economy. However, there was little agreement on how to revive the patient.

THE US, the most powerful economy in the world, responsible for a third of world output, is reeling with shock. This time there are no foreign terrorists who can be held responsible for disaster striking. It is capitalism itself that is responsible.

THE BOOMS of the 1980s and 1990s were both driven by frenzied international financial speculation. They have left deep problems for capitalism, and now form a massive barrier to a new, sustained economic upswing in the world economy.

"The credit system appears as the main lever of overproduction and over speculation in commerce solely because the process of reproduction, which is elastic in its nature, is here forced to its extreme limits.

Summer is usually a period when "not much happens", at least in Europe. But this Summer is like the calm before the storm. The mass demonstration in Genoa and the last general strike in Argentina are indications of the tumultuous years ahead.

Committee for a workers' International publications

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