Just because the Euro crisis has dropped out of the headlines, it does not mean that it is not still festering. Add in the difficulties in the BRIC countries and the slow-down in the US, and we have a ‘perfect storm’ .. probably reaching a crescendo next year.
Nouriel Roubini, the NYU economist nicknamed “Doctor Doom” for his prediction of the 2008 financial crisis, believes that events are again turning against the global economy. (July 18, 2012)
http://www.youtube.com/watch?v=6WId6c8AbtA&feature=player_embedded
A huge part of global problems is that wealth is redistributed upwards and offshore. Read the Observer article – ‘Wealth doesn’t trickle down – it just floods offshore, new research reveals.’
http://www.guardian.co.uk/business/2012/jul/21/offshore-wealth-global-economy-tax-havens?CMP=twt_gu
‘In fact, some experts believe the amount of assets being held offshore is so large that accounting for it fully would radically alter the balance of financial power between countries. The French economist Thomas Piketty, an expert on inequality who helps compile the World Top Incomes Database, says research by his colleagues has shown that “the wealth held in tax havens is probably sufficiently substantial to turn Europe into a very large net creditor with respect to the rest of the world.”
In other words, even a solution to the eurozone’s seemingly endless sovereign debt crisis might be within reach – if only Europe’s governments could get a grip on the wallets of their own wealthiest citizens.’