The value of financial derivatives is about $500 trillion.
Global GDP is about $70 trillion.
The U.S. Economy is about $13 trillion.
The U.S. Federal Budget is about $3 trillion.
Is it any wonder that markets seem to doubt the U.S. government's ability to actually stem the tide of financial crisis? The whole of our government's budget is not enough to cover a movement of even a few percent in global financial markets.
During this age of globalization, when financial markets around the world are increasingly interconnected, we should have been moving towards global regulatory mechanisms, replicating the success of Keynesian policies within national economies. Instead, conservatives have been busily deregulating even within national economies.
R World (Ron Davison muses aloud)
You might like this
ReplyDeleteQuestions for McCain and Obama on the Economic Carnage
By Nieman Watchdog.
Numbers give me a headache. These big numbers give me a migraine. I can feel it all beginning to blur. Actually, it's not such a bad thing, the blurring. It insulates me from the truth. I wonder how many out there, like me, suffer from this same malaise?
ReplyDelete