The editors have chosen an excellent title for this book “The Debt Crisis: From Europe to Where?” which incorporates a series of analyses written mainly in 2011 – 2012. The epicentre of the crisis that began in the United States in 2007 shifted to Europe in 2010 and it is necessary to ask the questions: where is this crisis leading to? How will the rest of the world be affected?

The combined effect of a crisis of overproduction in the real estate sector in the U.S., as well as the banking and financial crisis of great magnitude produced the economic and social disaster. The banking and financial crisis was itself caused by the deregulation of the financial sector launched by the successive governments in the U.S. and Europe starting from the widespread introduction of neo-liberal policies in the 1980s. This deregulation allowed large banks and major insurance companies to develop derivatives and structured products that are powerful weapons of mass destruction. These bombs began to explode in 2007 and the explosions are not yet over. The current crisis is clearly a major crisis of the capitalist system. The current governments benefit from it, since they can apply shock therapy. The policies they are developing will prolong and aggravate the crisis. Sigue leyendo →