
© Getty Images/Tetra Images'Cold Hard Cash'
It is obscene that governments are failing to make changes needed to avoid another global financial crash despite many economists warning that one is coming, writes Ken Livingstone.
Back in October, the International Monetary Fund and World Bank had their annual meeting in Indonesia, where Indonesian President Widodo told the plenary session: "With all the problems that the global economy currently faces,
it's appropriate to say that winter is coming."He was followed by the head of the IMF, Christine Lagarde, who pointed out that
global debt (public and private) had increased by sixty percent since 2007 and now equalled $182 trillion. Whilst almost no one predicted the financial crash of 2008 there is widespread debate about another crash perhaps even worse. About once a decade a financial crisis occurs and since 2008 central banks have encouraged a big increase in share prices and property value by cutting interest rates and generating vast amounts of new money called
quantitative easing.Edward Bonham Carter, vice chair of Jupiter Asset Management, warned:
"The party is coming to an end. Remove the crutches that have supported global growth for a decade, throw in a trade war between the two largest economies, add a dash of wage inflation and a side dish of Brexit and you have a recipe that may prove rather unpalatable to global markets in 2019."
Comment: There is one major caveat - the Taliban are not interested in peace with the Afghan government. The New York Times reports: And, as Voice of America reports: