The kinds of riots we have seen in London points to a sign of things to come. Professor Nouriel Roubini has gone beyond predicting catastrophic economic downturns and is now predicting that the social unrest we are now seeing created by the economic crisis will spread through the Western world.
As reported here, Roubini's forecast is grim. "Recent popular demonstrations, from the Middle East to Israel to the UK, and rising popular anger in China – and soon enough in other advanced economies and emerging markets – are all driven by the same issues and tensions: growing inequality, poverty, unemployment, and hopelessness," says Dr. Nouriel Roubini. "Even the world's middle classes are feeling the squeeze of falling incomes and opportunities."
The only way to address the problem, he says, is for governments to increase infrastructure spending, debt reduction, fixing up the tax system and breaking up banks deemed too big to fail.
And the risk is growing. Mary Kaldor, part of the opposition movement in Hungary during the Cold War and now a professor of global governance at the London School of Economics is warning that the Arab Spring and Europe's riots have more in common than we think.
But fixing it will not be easy. Roubini is also predicting now that risk of Europe and America re-entering another recession are now greater than 50 per cent.
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