Forget ‘V’, we’re looking at ‘U’ or even ‘L’!

January 31, 2009

Our trustworthy media and politicians are predicting that this recession will last most of the coming year and then steadily return to business-as-usual by 2011; which would provide a neat little V-shaped graph.

Unfortunately the economist Nouriel Roubini of New York University, who predicted the current meltdown at an IMF gathering in 2006 (and who was labelled ‘Dr Doom’ for his troubles), says that this is unlikely. Roubini believes a U-shaped (18-24 month long) recession is much more likely and that there is even a slim chance of a multi-year L-shaped recession (similar to that of the Japanese economy in the late 90s). Either scenario would be devastating for the working class in the UK, not least because after 2011 we’ll be forced to pay back Gordon Brown’s supposedly recession-busting loans – and make no mistake it will be the poorer sections of society who’ll be paying the lions share of the debt whilst losing valuable services.

The only sure-fire way for the working class to escape the yolk of neo-liberal debt is to disconnect from an economic system that ensures our continued impoverishment. Worker’s cooperatives anyone?

In the meantime here’s a ‘V’ for the ruling classes…



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