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IPFS News Link • Economy - International

DAVOS: Inequality Rocks the Magic Mountain, China Shines

• by Pepe Escobar

The so-called globalized elites meet at the World Economic Forum (WEF) in Davos this year under the specter of extreme turbulence.

The WEF Global Risks Report is hardly reassuring. The top five most likely risks for 2018 all range from extreme weather/climate change disturbances to cyber-attacks. Yet according to the report, in terms of impact they are superseded by weapons of mass destruction – a direct consequence of the Korean peninsula stand off. 

Global elites are somewhat paralyzed by political inaction facing the most pressing questions of our time, just as the global economy is inundated by liquidity. Quantitative easing was actually the only concrete response to political inaction, adhered to by every Central Bank, from the ECB to the Japanese. Stock exchanges all over tend towards irrational exuberance; in 2017 the Dow went up 25%, the Nikkei 19%, the Hang Seng 35%.