By Mike Dolan. (Reuters) – Rising inequality both within countries and between nations have reached critical levels that need to be addressed to avoid trade, tax and regulatory backlashes that could strangle an already wounded world economy, European money managers say.

Speaking at Reuters 2012 Investment Outlook Summit, taking place in New York, London and Hong Kong this week, the investors said four years of financial crises, austerity and rising unemployment in the West had exposed rising income and wealth gaps that damaged the sense of fairness required to bind societies.

The potential instability from damaging the broader social contract ultimately threatened those at the top of the pile as well as the aggrieved majorities.

Editor’s note: Capitalism, unleashed the protestant work ethic and the complete separation of state and church, killing all spirituality has finally found its natural end. The current financial system is unsustainable. The world is witnessing a change which will now move to Asia’s rise and giving birth finally to Islamic inspired economic system. This is the only hope to reach equality and save humanity.

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http://www.reuters.com/article/2011/12/06/us-investment-summit-inequality-idUSTRE7B51YB20111206