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Is the world doomed to suffer another Depression?

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posted on Sep, 6 2011 @ 09:31 PM

Cited in part....

Europe is in disarray, stock markets are plunging, the banking crisis is back in full swing, gold is at record levels, and both the UK and US are self-evidently slipping back towards recession – not since the autumn of 2008 have things looked quite so ominous.

We appear to be at another pivotal moment, with Western economies once more staring into the abyss. At a conference in Frankfurt this week, Josef Ackermann, chief executive of Deutsche Bank, compared events to the Lehman Brothers catastrophe of 2008 and warned that many banks in Europe are essentially bust. His opposite number at KfW went further still and said that the present cocktail of negatives was “much more dramatic than 2008”.

Back then, governments and central banks still had the financial firepower and the will to attack the problem with massive injections of fiscal and monetary stimulus.

Today, the fiscal armoury is exhausted, while it is not clear that further monetary easing through the printing presses of “quantitative easing” would have any positive effect beyond the negative of adding to inflation.

Indeed, the parallels look alarmingly closer to the banking collapses of 1931, which plunged the world into prolonged depression, than the storms around the Lehman collapse. ...

Mass and disorderly default appears to be the only way in which events can unfold. The distinct possibility of catastrophic loss once more looms large across the world economy.

Against this grim backdrop, the cacophony of voices arguing that governments and central banks change tack, postpone fiscal consolidation and crank up the printing presses again grows steadily louder......

It took Europe over 40 years of economic and political turmoil to recover from the extreme over-indebtedness it imposed on itself in the folly of the First World War. Much as today, creditors and debtors tore each other apart economically in attempting to find a politically acceptable form of burden-sharing. We all know how the currency and trade wars of that era ended.

Another poignant commentary about the world economy falling into a depression with potentially disastrous consequences. The author does point out however that there is some room for optimism before things look as bad, namely:

... the tell-tale indicators of financial and economic distress are still not as bad, at least in the UK and the US, as they were in the immediate run-up to the Lehman crisis. Spreads are not as wide, bank funding markets remain just about open, and there is not yet the same complete collapse in consumer and business confidence as then.

But besides that, the author reluctantly agrees with Russian economist Nicolai Kondratiev, that “there is a much longer economic cycle of fast and slow growth lasting between 40 and 60 years that overlays the short-term business cycle.”

Personally I see the current system heading for a collapse rather than slow demise, though conditions will deteriorate at an increasingly faster pace until such time. It is the area of embedded weakness in the Eurozone and other economies around the world that may well be the trigger point to tipping the system into the abyss.

posted on Sep, 6 2011 @ 09:35 PM
we never left iut in the first place... so

posted on Sep, 6 2011 @ 09:42 PM
A recession or a depression or a catastrophe. Mmmm seems like catastrophe being brewed. I'm not talking about some primordial soup brewing "accidentally" but a full 500 gallon tank of super strength Imperial Ale. Drink up.

posted on Sep, 6 2011 @ 09:42 PM
Yes...Yes it is.

S&F for an important topic!

posted on Sep, 6 2011 @ 09:44 PM
reply to post by surrealist

you have to understand that under 1% of the worlds population controls around 90% of the worlds money

when you have this much of a monopoly you need to understand that nothing that happens with the economy is an accident

its just a technique to get more people in debt and under their control

posted on Sep, 6 2011 @ 09:47 PM
No, the world is not doomed to have another depression. We are being driven into a depression by greedy elitists whom seek to milk all of the "common people" dry of our savings and belongings.

Either way though we are definately headed for one.

posted on Sep, 6 2011 @ 10:08 PM
YES, the world is doomed to suffer another least, YOUR world.
You are the WEST. When the "news" mentions the "west"? That is YOU.
That is not China, or Russia, or Vietnam. Or India. It is YOU dear reader.

It is YOU suckers, the west, the ones that are bombing the middle east. You are NATO! Your countries have been stolen, and you are helpless. Your resources are being stolen, so that the resources of others can be stolen. You are helpless, and deep down inside you KNOW it. You have been conditioned to feel GUILTY. Take your seat, and sit have filled your role admirably, and now it is your turn to suffer.

What you may not know, is the "EAST"....the poor people in the East will not realize that they are helping the rich steal all of the resources that should benefit the poor ALL around the world, while they are getting the spoils of capitalism thrown to them like you might throw a bone to a dog. Perhaps YOU in the west can relate?

They will get some benefit from this in the short term, and that will be long enough for all of us to take our eye off of the enemy.

But, you say "Wait, I am not for all of that"!

posted on Sep, 7 2011 @ 10:58 PM
The universe is controlled by simple (and sometimes less than simple) rules. The way matter forms, our thoughts, everything is controlled by algorithmic, fractal functions.

Like any natural system, life ebbs and flows in our society, history, and culture. Good times comes, followed by bad times.

Life is made to grow and contract. You see it with moving borders of deserts, or even a simple Morning Glory.

Our economy, like any system, is a system controlled by the natural forces of the universe. Sometimes the Earth just has to be scorched to provide fertilizer for stronger, newer growth.

Of course we are "doomed" to a depression. A few restarts, too. It is the nature of our universe and we cannot change it.

posted on Sep, 7 2011 @ 11:08 PM
The Bible predicts this, store up Your canned goods, cause We are screwed

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