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UN Predicts Severe Economic Crisis Could Last Years

By Carol Forsloff     Jun 26, 2009 in World
Ban Ki-moon, the UN secretary- general, warns the economic impact of the present economic crisis could be years. Other analysts say this crisis is worse than the Great Depression.
Both Al-Jazeera and the Times of India put the story of the economic crisis on front pages. These news outlets represent information sources for millions of people. Ban Ki-moon maintains millions of people will likely be forced into poverty from a global economic crisis he says will last for years.
This announcement was made Wednesday at a UN financial news summit where the United Nations underlined the important issues raised by the global economic problems. He said those wealthier companies should not abandon their pledges to help the poor just because of their own economic struggles.
"Surely, if the world can mobilize more than $18 trillion to keep the financial sector afloat, it can find more than $18 billion to keep commitments to Africa," Ban said.
He went on to say how the world continues to struggle against the most serious economic and financial crisis since the foundation of the United Nations 60 years ago. "Some see financial stabilization and growth in some countries. But I want to say this loud and clear: These are merely signs," Ban said.
"For a large number of countries there are no 'green shoots' of recovery. There are only fallow fields. The real impact of the crisis could stretch for years."
Mike Whitney writes for Global Research that the present crisis is worse than the Great Depression. He reviews the financial interrelationships, what has been done to this point, and the interactions among the different institutions in the United States and across the world and sees no end in sight to the financial difficulties.
IBIS World gives projections about the present worldwide economic crisis. The key forecasts of IBISWorld's Macroeconomic Briefing Paper as summarized by Dr. Richard Buczynski are:
• The US economy will decline by 3% in 2009 and will not return to its normal course until 2011.
• Unemployment will continue to rise into the first quarter of 2010 and peak at 10.3%.
• Business investment will stay negative until the second half of 2010.
• Housing starts will not return to 2008 levels until 2011.
Ban Ki-Moon also said he sent a letter to G8 leaders who will meet in Italy next month "urging concrete commitments and specific action."
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