With the euro dollar close to demise, with Spain and Greece on the brink of default, with more and more interdependence of nations on this global economy is the entire world on the way to a world depression? The Euro dollar may not stand up for much longer. Can we keep bailing out and bailing out each country's economy without it taking a toll on the entire global economy?
A depression - by definition - is a long term economic downturn. And that means negative GDP change.
Does it apply to our planet as a whole? I don´t think so.
The BRIC economies are doing well, nothing to worry about a little slow down in China. Europe has a balanced current account, which means nothing is poored into the European economy in total. Of course Spain, Greece, Portugal are in tense situation, but not necessarily so with Ireland and Italy, who are always mentioned to be also messy. Europe is more a matter of internal productivity gaps. Could be solved easily with a real economic union.
It is another story with the US. The US needs every day a money donation of 2 Billion USD to maintain status quo. The US is so heavy on debt dope, it doesn´t even realize that it cannot bail out any foreign economy, not to mention itself.
When talking about debt, i mean the total of public, corporate and household debt, the sum is much more an indicator for economic well being than just looking at public figures.
Some countries may be in depression, but the world as a whole is not.
Good question, suzettenaples, and anyone's guess. This election year has taught me, in more uncertain terms than ever before, that where power is at stake, an agenda and money call the shots. Speaking as someone, among many, who have been laid off due to the economy, I have a front row seat privy to the lies, promoted by the candidates and relayed by the hungry media, that relay promise for the future one day and the dire situation that exists the following day. Depending on who is talking, we are left to come to our own conclusions, dictated by our circumstances.
The abject brutality in Syria, leaving more civilians dead now than surviving, the economic disaster abroad, with solutions that only postpone the inevitable, and leadership in America that straddles the fence, I don't see much hope for life as it was. In St. Louis, Missouri, job growth has remained lagging with statements leaning towards the suggestion to look elsewhere for employment. How do you do that when you have no income? Crime is increasing as the outlook becomes more grim. The future feels foreboding with little hope of improvement when money rules. I feel we are all on our own.
This is believed to be either Stage Six or Seven before a typical economic restart.
Has happened a few times throughout history. This time, however, it is global and could result in a major global depression. Some have even suggested an unrecoverable collapse, as too many people are below the cost of living range as it is. Explains why gold is being bought at a ridiculous rate, as told by Mike Dillard and others.
Maybe the world will get lucky and go back to Salt being worth more than precious metals. Was that way for nearly two or three millennium, if my information is correct.
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