THE latest economic news from crisis-hit USA and Europe has not been good, either for the countries themselves, or for the world, which looks to them, particularly the former, to spend the world out of the economic crisis that it got the world into, in the first place. The USA has recorded negative year-on-year growth of 6.2 percent in the last quarter of 2008, the worst decline since 1982. At the same time, the eurozone, where the Euro has replaced the national currencies, reported a loss of a quarter of a million jobs in January alone. The American figures did not mention job losses, but there must be many jobs lost in a contraction that big. The decline came after a third-quarter contraction of 0.5 percent, and when there is another quarter's contraction, as seems virtually certain, the recession will be official, but already it seems that the banking crisis has sent the economies of the world into a tailspin of recession and contraction. The implications for Pakistan are manifold. First, from the point of view of the government, this is not the best time to put anything on the market, certainly not engage in any sort of privatization programme. Also, this is not really a time to expect any sort of foreign investment, mainly because the money is not there. And though Pakistan is a leading partner of the West in the War on Terror, with governments spending to prevent further bank defaults, mainly by buying shares, there is not too much aid money around to give, even to Pakistan. Also, with such a huge recession, migrant labour, especially Pakistani, will be the first to be laid off. Therefore, the remittances being expected will probably not be forthcoming, thus worsening the crisis in Pakistan. The West is busy blaming the current crisis on American sub-prime mortgages, but the fact is that they have spent not just thousands of lives, but a great deal of money, on the War on Terror. That burden is at the root of the crisis, and until they end their illegal occupations of Muslim lands, the economic crisis will keep on haunting the West.