*So, the good ol' World Economic Forum in Davos, soulful rich guys always frettin' about something... Y'know, the mortal enemies of the World Economic Forum over at the World Social Forum ought to be absolutely dancing in the streets about the downfall of global capitalism. They've been predicting this for years.
*Wait a minute... They're NOT dancing in the streets? Not one gloating street-puppet to be seen? Gosh all fish-hooks.
http://www.guardian.co.uk/business/2010/jan/14/world-economic-forum-future-crises-warning
"A fully-fledged sovereign debt crisis, an asset price collapse and a slowdown in Chinese economic growth are among some of the biggest threats facing the world this year and beyond, the World Economic Forum (WEF) warned today .
"In its annual report on global risks, the WEF cautioned that the financial crisis and the ensuing recession have created a more vulnerable environment.
"The report, which will be submitted to the forum's annual meeting in Davos, Switzerland, this month, said: "Many countries are at risk of overextending unsustainable levels of debt, which in turn will extend strong upwards pressures on real interest rates. In the final instance, unsustainable debt levels could lead to a full-fledged sovereign debt crises."
"Daniel Hofmann, group chief economist at Zurich Financial Services, a contributor to the report, said: "Government debt levels of 100% of GDP – which is where the United States and the UK are heading – and higher are clearly not sustainable. There is an inherent risk that investors may take fright, they may question the sustainability of these debt levels. The result would be sovereign debt crises and defaults. Clearly Dubai and Greece were early warnings that should be heeded." (((One wonders where these 'frightened investors' plan to go after crashing the USA, China and Great Britain. Do they have another planet they can reach on private spacecraft? Suppose an angry population simply hanged all the "frightened investors" from lamp-posts, declared previous currencies null and void, and started over by fiat with revolutionary governments. Wouldn't that solve this "unsustainable" financial problem pronto?)))
"The WEF was also particularly concerned about China, saying that the country's economy is on a "very unbalanced growth trajectory". Hoffman said despite the fact that China appears to have navigated the financial crisis and global recession, much of the domestic impulses derive from high credit growth, which entails an increased risk of misallocation of capital and renewed bubbles in financial asset prices and real estate....
