Cameron, Harper issue warnings of new economic crisis

Ottawa, Ontario, Canada (AHN) – British Prime Minister David Cameron warned of a new economic crisis in his address before the Canadian Parliament on Thursday.

Cameron pointed to the failure of U.S. and European leaders to address government deficits that led to the threats to the stability of the world economy.

On the same day, stock markets across the globe dipped sharply again amid worries by politicians, central bank heads and investors that the rich nations would enter another recession because of huge government debts.

The British leader said that while Britain and Canada are not yet staring done the barrel, the indicators point to that direction and warned British and Canadian families could face a tough time in coming months.

He said the world is suffering from unparalleled debt levels not seen in decades, which clearly points to a debt crisis, not a traditional cyclical recession. To address the problem, Cameron said the usual solution of fiscal and monetary policies to stimulate the battered economies would not necessarily work.

Canadian Prime Minister Stephen Harper, in his introduction of Cameron, pushed for nations to resist trade protectionism, accept more flexible exchange rates and commit to reduce deficits and dangerous and unsustainable levels of national indebtedness.

Cameron challenged Western politicians to exercise more leadership and warned their indecision would worsen the crisis.

Prior to his Ottawa speech, Cameron headed a new group of nations from the G20 that wrote a letter to American and European leaders to blame them for their lack of action that led to the crisis. The letter was signed by leaders from Australia, Canada, Indonesia, Mexico and South Korea.

Similar warnings were previously made by the heads of the International Monetary Fund and World Bank.

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