The interdependence among countries was one of the key reasons for the expansion of the crisis from the United States to the international economy in 2008. Now, as in 2008, every country is affected by the crisis. The complex links among countries and corporations require integrated moves among countries, as well as mutual consideration and genuine willingness to support faltering economies. It seems that the message, \u201cwe\u2019re all in the same boat\u201d has indeed sunk in. Yet, attempts to resolve the crisis through monetary or financial stimuli have failed bitterly in both the U.S. and Europe.<\/p>\n\n\n\n
The world\u2019s inability to deal with the roots of the global crisis since 2008 perplexes our economists and decision-makers. They ponder how to conduct trade and use the vast financial system in a world turned global and integral, as well as how to manage countries\u2019 desire to maximize their profits separately, using economic reciprocity. The gap between the mandatory reciprocity imposed by the interdependence among countries in the global-integral world, and the current nature of the international economic system\u2014based on narrow and self-centered approaches\u2014is now recognized by the international economic community as a crisis.<\/p>\n\n\n\n
Nouriel Roubini, Professor of Economics at New York University and one of the few who predicted the global credit crisis back in 2004, stated in the summer of 2011 regarding the escalating global crisis, \u201cKarl Marx had it right. At some point, capitalism can self-destroy itself.\u201d <\/a><\/a>[8<\/a><\/strong>] Likewise, Nobel Prize winner Joseph Stiglitz, stated, \u201cIn a way, not only is there a crisis in our economy, there ought to be a crisis in economics.\u201d <\/a><\/a>[9<\/a><\/strong>]<\/p>\n\n\n\n Also, in September 13, 2011, Mohamed A. El-Erian, CEO and co-founder of PIMCO, the largest investment firm and bond fund in the world, stated in a radio interview on \u201cBloomberg Surveillance\u201d with Tom Keene and Ken Prewitt, \u201cWe\u2019re getting close to a full-blown banking crisis in Europe. … We are in a synchronized global slowdown. There\u2019s very little confidence in economic policy making both in Europe and the U.S…\u201d <\/a><\/a>[10<\/a><\/strong>]<\/p>\n\n\n\n On a different occasion, Mr. El-Erian, \u201cGave four reasons constraining an improvement in the global economy. Oil prices … are too elevated, housing markets haven\u2019t sufficiently stabilized, Europe hasn\u2019t solved its debt crisis, and world leaders are concerned that U.S. politicians are \u2018arguing too much.\u2019 Different sections of the orchestra are playing a different tune and it sounds confusing.\u201d <\/a><\/a>[11<\/a><\/strong>]<\/p>\n\n\n\n These statements and others by leading economists and financiers demonstrate how countries\u2019 aspirations to maximize their profits have led them to interdependence. At the same time, these statements testify to their bewilderment and inability to cope with the global economic reality.<\/p>\n\n\n\n <\/a><\/a>[8<\/a><\/strong>] Nouriel Roubini Blog, http:\/\/nourielroubiniblog.blogspot.com\/2011\/10\/karl-marx-had-it-right.html (originally said in a video recording to the WSJ: http:\/\/online.wsj.com\/video\/roubini-warns-of-global-recession-risk\/C036B113-6D5F-4524-A5AF-DF2F3E2F8735.html)<\/p>\n\n\n\n <\/a><\/a>[9<\/a><\/strong>] \u201cShort films from the 2011 Lindau Nobel Laureate Meeting in Economic Sciences,\u201d The New Palgrave Dictionary of Economics Online<\/em>, http:\/\/www.dictionaryofeconomics.com\/resources\/news_lindau_meeting (the above-mentioned statement is in Stiglitz\u2019s video after 10:05 minutes.<\/p>\n\n\n\n <\/a><\/a>[10<\/a><\/strong>] John Detrixhe and Tom Keene, \u201cEurope Close to Banking Crisis, El-Erian Says: Tom Keene,\u201d Bloomberg<\/em> (September 13, 2011), http:\/\/www.bloomberg.com\/news\/2011-09-13\/europe-close-to-banking-crisis-el-erian.html<\/p>\n\n\n\n <\/a><\/a>[11<\/a><\/strong>] Jason Kelly and Laura Marcinek, \u201cPimco\u2019s El-Erian Says U.S. Unemployment Is \u2018Stubbornly High,\u2019\u201d Business Week<\/em> (May 2, 2011), http:\/\/www.businessweek.com\/news\/2011-05-02\/pimco-s-el-erian-says-u-s-unemployment-is-stubbornly-high-.html<\/p>\n","protected":false},"excerpt":{"rendered":" The interdependence among countries was one of the key reasons for the expansion of the crisis from the United States […]<\/p>\n","protected":false},"featured_media":0,"parent":10985,"menu_order":0,"template":"","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}}},"topic":[29],"class_list":["post-10994","book","type-book","status-publish","hentry","topic-various-authors"],"acf":[],"yoast_head":"\n