Saturday, September 24, 2011

Economic Crisis: A controlled demolition?

Just last night, Standard & Poor's lowered the credit ratings on the Italian sovereign debt, taking it from A+ to A, increasing concern of some gloomy scenarios in the global economic crisis, a crisis – we'll just say this right away – that looks to us like a "controlled demolition", with precise aims.

The contradictions inherent in the world economy and its pattern of growth have always caught the attention of AsiaNews. Since 2003 we have offered our readers an analysis that has gone against the current, one often very critical with respect to the dominant thought. In this, our special attention to Asia and particularly to China's economy has proved a valuable asset.

Thanks to it, in fact, before many others, we were able to observe and then explain some phenomena that have become common and essential elements of every serious, successive economic analysis. Globalization, so widely praised until a few years ago, was based, in fact, on a unique symbiosis: on the one hand, it has fueled Asian, and particularly Chinese, growth, focusing on exports, with annual rates of around 10%, maintained, moreover, nearly constant for about twenty years. On the other hand, the rapid transformation of Western countries and particularly of the U.S., in economies that are no longer based on manufacturing, but on services, finance and consumption (including a large military expenditure), fueled by the issuance of currency. more