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Fears Of A New Global Crash As Debts And Dollar’S Value Rise

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http://www.theguardian.com/business/2015/mar/28/rising-dollar-debt-fears-global-economic-crash

Greek ministers are spending this weekend, almost five grinding years since Athens was first bailed out, wrangling over the details of the spending cuts and economic reforms they have drawn up to appease their creditors.

As the recriminations fly between Europe’s capitals, campaigners are warning that the global community has failed to learn the lessons of the Greek debt crisis – or even of Argentina’s default in 2001, the consequences of which are still being contested furiously in courts on both sides of the Atlantic.

As Janet Yellen’s Federal Reserve prepares to raise interest rates, boosting the value of the dollar, while the plunging price of crude puts intense pressure on the finances of oil-exporting countries, there are growing fears of a new debt crisis in the making.

Ann Pettifor of Prime Economics, who foreshadowed the credit crunch in her 2003 book The Coming First World Debt Crisis, says: “We’re going to have another financial crisis. Brazil’s already in great trouble with the strength of the dollar; I dread to think what’s happening in South Africa; then there’s Malaysia. We’re back to where we were, and that for me is really frightening.”

Since the aftershocks of the global financial crisis of 2008 died away, the world’s policymakers have spent countless hours rewriting the banking rulebook and rethinking monetary policy. But next to nothing has been done about the question of what to do about countries that can’t repay their debts, or how to stop them getting into trouble in the first place.

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And while the debate rages, developing countries have been taking advantage of rock-bottom interest rates and the cheap money created by quantitative easing to stack up billions in new debt.

Using recently released World Bank data, the Jubilee Debt Campaign calculates that in 2013 alone – the latest period for which figures are available – borrowing by developing countries was up 40% to $17.3bn.

Chicken feed compared to first world borrowing figures! Our George can sometimes burn through that in a month.

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borrowing by developing countries was up 40% to $17.3bn.

Peanuts. UK government account rounding scale. I don't read any articles now unless they are talking about trillions. Billions are so 2006.

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When I debated directly w/ Ann Pettifor she would not accept there is a solution. #bsnbankbailouts #banQE #letmktsetrates

For her the solution is cabal decides who gets lianed to aka more central planning.

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