How bad is the economy? Look at this scary, scary graph

www.freshbite.info...

Damn economy, you scary! that was downright frightening.

That's a very scary drop. This is worse then what most think. I'm officially scared.

You know what i don't understand?.... where the hell is all the money? The world still has the same amount of money that it had this time last year, so where is it? And if we lost some of it, can't we just print some more and distribute it evenly to all the countries?



Something stinks.

Originally posted by Obliterated
You know what i don't understand?.... where the hell is all the money? The world still has the same amount of money that it had this time last year, so where is it?

The world has more money everyday. Most of the world's financial systems are based on currency that has no real value. For example, when you put $100 in a bank account and it generates 1% interest, it means that you created $1 out of thin air. That $1 has no printed value, since it was not something the Federal Reserve printed. Now imagine trillions of dollars gaining interest every day like this, for many decades, and you will see how there is more digital currency in circulation than actual printed money.

This causes inflation, or the weakening of the currency. Germany went through this before WWII, in what is known as "hyperinflation."

And if we lost some of it, can't we just print some more and distribute it evenly to all the countries?

This is exactly what Germany did. They printed so much money that they were forced to make bills worth a million each. I'll give you another example. Right now, gold is the most valuable form of currency in the world. If tomorrow, everything anyone touched could be turned to gold, how valuable would gold be then? It wouldn't be valuable anymore because it is no longer scarce and everyone will be able to access it.

The same thing occurs with money. The more money there is out there, the less valuable it becomes.

[edit on Wed Feb 11th 2009 by DJMessiah]

its scary how it dropped down!
something reminds me on REM song.
"its the end of the world as we know it".
no seriously ,this makes little children scared,they may not have a future.if it goes on like this

I personally believe this is a False Flag event, that the global elite are collapsing the global economy to bring about a new financial order, as asked for by Britain's pm Gordon Brown.

We are lead to believe that it's just a normal occurrence, but this is an engineered crisis, they will make us suffer and starve to bring about the "change" they want.

Oh man, you're commentary made me laugh out loud. That was funny... But the graph sure isn't.
I saw it a few days ago on a blog run by Barry Ritholtz and it was followed up by these two similar graphs:





*The images are too big to post without links but they are a must see.

[edit on 11-2-2009 by beaverg]

I wonder why they chose to compare this recession to past recessions that were mild in comparison.

Last time I recalled, those two past recessions did not have a housing market crash, a heavy stock market tumble, or the government giving away trillions.

Just seems like apples and oranges IMO.

[edit on 11-2-2009 by jam321]

reply to post by Obliterated

You know what i don't understand?.... where the hell is all the money?

You sent it to China (Mexico, etc.) buying their cheap stuff instead of USA and Canadian. So now we are borrowing that money back at interest from China, thanks to Obama, Pelosi and Reid in an attempt to pump up an economy that has little PRODUCTION because we have let CHINA et al take over production.

Now the retirement generation (the baby boomers) have lost their retirement because of the stock market crash and are back to work competing with the Xers and all the rest.

So the job market may get real tight!

My advise is make sure your position is indispensible!

Great explanation DJ. I couldn't have said it better myself. And Jam, I see you're point but I think adding in the housing crash, job loss and government spending is apples to apples. We're comparing nice red, ripe apples to the moderatly spotted ones, to the bushel of rotten apples that we're in now. This chart shows for everyone just how bad we've gotten lower over the years. Scary part is, if the trend continues, we're in this recession for a year and a half to two years, then we will come out of it. Problem is, the next one will be even worse. Whats scary is eventually we might become too low to come back up.

As kids did anyone play on swings? I did and every time I'd hit the low spot I'd try to skim my feet along the dirt. Problem was one time I got a hold of too much of it and it yanked me right out of the swing and slammed me on to the hard dirt.

Lets hope this recession isn't the one that knocks our face in the dirt

Originally posted by plumranch
reply to post by Obliterated

 

You sent it to China (Mexico, etc.) buying their cheap stuff instead of USA and Canadian.

I live in Australia. What we export to the U.S is less than half of what we import from us, so that doesn't help our economy very much. The import about 10billion from us but we import about 22billion worth from the U.S.

China however, imports 18billion from us and we export 15billion to them, so our trade is close to even with them. So it is better for us here to support China than the U.S.

Originally posted by Obliterated
You know what i don't understand?.... where the hell is all the money?

Here is where the money is. It has been redistributed to the most wealthy people:

Originally posted by Obliterated
You know what i don't understand?.... where the hell is all the money?

What DJMessiah said is correct..

What you also have to add into the equation is
*The 'Deposit Guarantee system' that is used by western banks. It keeps 10% of every lodgment as capital and allows 180% of what you deposited to be leant out. This creates the incentive for massive growth but also creates a massive hole of non existent money on which many financial institutions were built upon.

*The drop in property prices.. Capital in the form of property that was suddenly worth half of what was paid for it creates another large loss of money to the banks on foreclosed homes.

Put the two of these together, add a global banking collapse and investment pullout cascade that followed on from the US because of non transparent trading between international and global financial institutions, the packaging and sale of bad debts as mid yield investments from US traders to the world and the rise in Oil prices to push everything over the edge (thanks exon-mobil) and Voila..

Current Global Crisis.

reply to post by DJMessiah


well, I understood it bit different : if you place 100$ in your bank, the banks (working in a chain) will automaticly get the right to make 900$ worth of loans using the "fractional reserve banking system" . The 900 $ will not only be created from nothing, but it will also bear interest rate for every hundred of $$ . This is a perpetual debt system that is limited by the life-spam of humans : we can borrow only what we can pay back in our life-time. On the global US scale (average) , this limit was reached in 2008.

The only way to get out of this is to reset all the financial system , then create one based on sustainable economy rather than perpetual growth of debt.

This is a nice video quite popular on Google Videos at the moment.

Google Video Link

Originally posted by sty
reply to post by DJMessiah

 

well, I understood it bit different : if you place 100$ in your bank, the banks (working in a chain) will automaticly get the right to make 900$ worth of loans using

Its not that much, you can give out 180% of the deposit as a loan.

GOLD ALERT: Nearby Gold just rallied to $945, taking out last Oct Highs.

GOLD ALERT: Nearby Gold just rallied to $945, taking out last Oct Highs.

debt liquidation is like a financial black hole....money, unlike energy, can be both created and destroyed....sayeth Moneta Shiva

reply to post by Benevolent Heretic

Originally posted by Benevolent Heretic
Here is where the money is. It has been redistributed to the most wealthy people:

(emphasis supplied)

"Redistributed" by whom? That term isn't correct.

I assume you mean 'unfairly earned'.

Incidentally, here is another source for the graph:



Link.


[edit on 11-2-2009 by loam]