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Global Financial Crisis Sample, Not Original

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The World Bank issued its biannual Global Economic Prospects report Tuesday, sharply downgrading its forecast for economic growth from its previous report released last June. The Washington-based international lending agency projected an expansion of the world economy in 2013 of only 2.4 percent, down from its forecast six months ago of 3.0 percent.
The bank said the global gross domestic product (GDP) grew by 2.3 percent in 2012, downwardly revised from its June estimate of 2.5 percent. It predicted that the world economy would grow by 3.1 percent in 2014 and 3.3 percent in 2015. These projected rates, lower than the bank’s June estimates, are insufficient to significantly reduce near-Depression-level jobless rates in the US and much of Europe or stem the spread of poverty.
The report demonstrates that more than four years after the September 2008 financial meltdown on Wall Street, there is no end in sight to the economic crisis. It points as well to the extent to which the economic policies pursued by governments and central banks around the world have benefited the wealthiest social layers at the expense of working people.
This is summed up in one set of statistics presented in the report. While economic growth has stalled or turned negative in much of the world since the bank released its previous report in June, stock prices have soared. Stock markets in the so-called “developing countries” are up by 12.6 percent over the past six months, while equity markets in the “high-income” economies of North America, Europe and Japan have risen by 10.7 percent. The MSCI All-Country World Index has jumped by 17 percent since the end of 2011.
The combination of massive bank bailouts, virtually free and unlimited credit for banks and financial institutions, and austerity for the working class has served to prop up the financial system and further enrich the ruling elite

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