Saturday, June 21, 2003

This says a mouthful: the Masters of the Universe, also known as the members of the World Economic Forum, said in Jordan that 75% of them had no plans of any kind to increase capital investment; 24% said they would increase investment in the "medium term"; a scant 1% said they would boost capital spending "immediately".

If the "recovery is around the corner" hype in the United States is true, then it is only capital in the US which intends to begin plowing profits back into productive capacity. This would clearly aggravate the problems of a US-centric global economy even more, sending the current account deficit into the stratosphere. If you thought 5.7% of GDP was big, you aint seen nothin' yet!

Of course, the hype is probably just that -- hype. With comments like these from the mouth of transnational capital itself, there's little reason to think anything but that the doldrums, the 'jobless recovery,' the 'era of low growth' or whatever you want to call it will be with us for quite some time. We won't be able to tell the difference between recession and recovery.


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