The OECD is a middle-of-the-road international agency. It reports on economic trends. It favors Keynesian intervention at all times. Here is a video of its latest predictions.
Here is the message: The world will muddle through in 2012, unless the euro crisis intensifies. If that happens, the world goes into prolonged recession.
This report is straight Keynesianism. It promotes government intervention. It is cheerleading for Europe’s governments to borrow more and spend more. It does not say what the governments should do . . . just something. The fact that the OECD would publish a video this depressing indicates that the Keynesians are worried. This economy could crash. They are getting on record in advance that they warned against this. But, basically, it’s a re-hash of what everyone knows. The Eurozone is coming apart. The politicians are sitting on a ticking time bomb.