Wikinvest Wire

Medvedev must have read "Bad Money"

Sunday, June 08, 2008

New Russian President Dmitri A. Medvedev must have picked up a copy of Kevin Phillips' new book Bad Money: Reckless Finance, Failed Politics, and the Global Crisis of American Capitalism, a review of which will hopefully be forthcoming here in the week ahead.

According to this New York Times report, in his first major economic speech, he said that the world might be headed toward The Greater Depression, thanks to the good 'ol US of A:

In a keynote address that underscored his knowledge of corporate terminology, Mr. Medvedev spoke of “economic egoism” and “economic nationalism,” and he made specific reference to the United States overreaching its economic capabilities.

“It turned out to be an illusion that one country, even the most powerful, could take upon itself the role of global government,” he said.

“Moreover, namely, the dissonance between the formal role of the United States of America in the world economy and its actual capabilities was one of the central causes of the current crisis. However big the American market, and however reliable the American financial system, it’s not capable of replacing global goods and financial markets.”
There's more from Bloomberg here including this gem of a quote:
"An underestimation of risks by the largest financial companies together with the aggressive financial policy of the world's largest economy led not only to corporate losses; unfortunately, the majority of people on the planet became poorer."
Lighten up Dmitri!
ooo

This week's cartoon from The Economist:
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3 comments:

charles said...

True the recent financial shenanigans are partly to blame, but the world economy will go into a depression because the days of increasing supplies of cheap energy are over, thus economic growth is over. Our financial systems, which developed in an environment of increasing cheap energy over the last few hundred years, will no longer function and will drive the world into deeper problems until people realize that the old rules don't work anymore.

On a side note, I'd love to know how much participation there is, in the current ruinous financial games, by Russian organized crime, ahem, Russian biznessmen.

Anonymous said...

I think the Fed is organized crime on a grand scale. How else could one raise funds to invade and destroy entire nations while cutting direct taxes?

me said...

Charles said "True the recent financial shenanigans are partly to blame, but the world economy will go into a depression because the days of increasing supplies of cheap energy are over, thus economic growth is over."

I must disagree Charles. Mercedes and BMW are diverting output from the US to emerging markets. If India has our jobs, it stands to reason that they can afford cars and the gas to go in them and they don't remember gas being $17.9 a gallon.

We have caused our problems and that does not mean the rest of the world will fall because of us.

The US is steadily being left out. Saudis sell less oil to the US and more to Asia. Iran is locking up deals with China and India. Japan exports more to China than the US. WalMart is opening 3000 stores in China. So is Starbucks. Chain and European trade is increasing. And thanks to Bush, China is taking over influence in Asia and Africa with trade agreements and investments. While we make war (Iraq), talk or making more war (Iran). what do you think the world thinks of Bush/the US when he holds hostage, $50 Billion of Iraqi funds until they agree to permanent US bases they don't want?

Kevin Phillips book was great.

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