US debt triggered global crisis

The US has imported 5 trillion dollars more than it produced in the past decade and this was a major cause of the global financial crisis.

An aide to Klaus Schwab, founder and chairman of the World Economic Forum quoted him as saying that, “Imbalance triggered the current financial crisis.”

As debt became unsustainable, governments had to step in to cover losses, he said.

(ARTICLE CONTINUES BELOW)

The upcoming Davos forum, which convenes in January, is to focus on the crisis, under the banner “shaping the post-crisis world,” though there is no indication yet that the economic woes are set to end by then.

Some 1,200 business professionals and at least 43 public figures are set to attend the 39th annual forum, the aide said, noting this was to be a “record participation” level.

Russian Prime Minister Vladimir Putin will open the event, while the names of the other senior participants will only be made available a week before the start of the conference.