http://www.wsws.org/articles/2011/aug2011/econ-a17.shtml

By Barry Grey 
17 August 2011

Excerpts :

The global economy is moving into a new stage of the slump that followed the Wall Street crash of September 2008, under conditions where the dollar-anchored world currency system has been irreparably destabilized, the common European currency is being undermined by intra-European imbalances and national antagonisms, and the entire architecture of post-World War II economic relations is visibly disintegrating.

It is no longer possible to credibly maintain that the economic crisis that erupted nearly three years ago was merely a temporary downturn, followed by a genuine and sustainable recovery. Policymakers are being forced to acknowledge that the massive bank bailouts and austerity programs have resolved none of the underlying problems and that the economic situation is deteriorating.

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“Karl Marx had it right,” Roubini said. “At some point capitalism can self-destroy itself. That’s because you cannot keep on shifting income from labor to capital without having excess capacity and a lack of aggregate demand. We thought that markets work. They are not working.”