Triple Crisis blogger Martin Khor originally published this article in the Third World Network.
A string of bad economic news in the past week shows the rich countries in a deepening crisis — increased joblessness in the United States, no solution in sight for the Greek debt crisis and contagion to other European countries.
There was more bad news about the global economy last week. It looks as if the major developed economies are facing worsening problems that will not go away.
This does not augur well for the developing world, as it is still dependent on the richer economies.
An economic slowdown in the United States was indicated by last week’s data of a rise in unemployment to 9.2% and only 18,000 new non-farm jobs created in June.
President Obama’s on-going battle with the Republicans to get Congressional approval to increase the government’s debt limit and avert a default is also likely to end with an agreement to slash government spending. That will have a depressing effect on the economy.