The world is facing the worst financial crisis since at least the 1930s “if not ever”, the Governor of the Bank of England said last night. Sir Mervyn King was speaking after the decision by the Bank’s Monetary Policy Committee to put £75billion of newly created money into the economy in a desperate effort to stave off a new credit crisis and a UK recession.
The eurozone crisis could wreck the European Union, top EU officials warned on Wednesday as the leaders of Germany and France held talks with Greece to avoid a default and widespread chaos. The pressure rose on all fronts with United States again expressing great concern, with Treasury Secretary Timothy Geithner saying European states “now recognise they are going to have to do more” to resolve to the crisis.
An air of crisis descended on the world Tuesday, Aug. 9 as markets continued to tumble steeply and in London, large parts of the city succumbed to uncontrolled violence joined by three major British cities. Far East stocks leveled out at 3 percent, Europe fell 3.5-5 percent Tuesday after Wall Street slid 5-7 percent Monday. More than $70 billion were wiped out in global trading Monday hours after US President Barack Obama said America will always be a Triple A country no matter what some agency may say.
Tea Party Downgrade? In the wake of a bruising battle over the debt ceiling and now a first-ever credit downgrade, Democrats have launched a salvo of rhetorical attacks on the Tea Party and appear determined to blame the movement for everything from the debt crisis to the sputtering economy.
Gray smoke rose from two reactor units Monday, temporarily stalling critical work to reconnect power lines and restore cooling systems to stabilize Japan’s radiation-leaking nuclear complex. Workers are racing to bring the nuclear plant under control, but the process is proceeding in fits and starts, stalled by incidents like the smoke and by the need to work methodically to make sure wiring, pumps and other machinery can be safely switched on.
The nuclear accident at an earthquake-damaged nuclear plant in Japan can now be classed as level six out of an international scale of one to seven, experts said Tuesday. France’s ASN nuclear safety authority’s assessment came after Japanese Prime Minister Naoto Kan said radiation had spread from the four stricken reactors of the Fukushima Dai-ichi nuclear plant along Japan’s northeastern coast.