http://profitabletradingtips.com/profitable-trading-tips/are-we-falling-into-the-next-great-depression
Are We Falling into the Next Great Depression
Why didn’t the 2008 market collapse lead to another Great Depression? And are we rather falling into the next Great Depression now with rock bottom commodity prices? the globe and mail discusses the great depression in commodity prices. The focus is on the Canadian economy but the lessons learned apply across the world.
to understand the perils facing the canadian economy today, think about the plight of prairie farmers in the 1930s. they were selling their crops to markets at rock-bottom prices – it was the great depression in commodity prices that gave the era its name – and they could not earn enough to pay their bills. as prices for their goods continued to sink, the burden of their debts increased absolutely. that is why price depression, or deflation, is a recipe for hard times.
the good news about falling prices in the 1930s was that food became very cheap at the grocery store – just as gasoline is now very cheap at the pump. all well and good for those of us with jobs and steady incomes; no help at all to those whose livelihood is being erased.
if the script stays true to form, the next two scenes are, first, attempts by countries to achieve competitive advantage by devaluing their currencies – watch china; and second, the development of financial pressures as producers are unable to meet their debt obligations.
then we have bankruptcies and repudiations. in 2008 it was the failure of private corporations, such as lehman brothers, that caused a global crisis. what will happen when whole petro countries, such as venezuela and nigeria, slip toward chaos?
In his poem, the hollow men, T. S. Elliot finished by saying, this is how the world ends, not with a bang but a whimper. If we are falling into the next great depression it is not with the bang of another Lehman Brothers bankruptcy but rather with whole nations sliding out of the world economy and into social disruption.
The Third Leg of the Global Financial Crisis
the financial times writes that the global economy is teetering between a continued slow recovery and a slide into a third leg of the global financial crisis.
2. Why didn’t the 2008 market collapse
lead to another Great Depression?
3. And are we rather falling into the
next Great Depression now with rock
bottom commodity prices?
4. Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com
5. the globe and mail discusses the great
depression in commodity prices.
6. The focus is on the Canadian
economy but the lessons learned
apply across the world.
7. to understand the perils facing the
canadian economy today, think about the
plight of prairie farmers in the 1930s.
8. they were selling their crops to markets
at rock-bottom prices – it was the great
depression in commodity prices that
gave the era its name – and they could
not earn enough to pay their bills.
9. as prices for their goods continued to
sink, the burden of their debts increased
absolutely.
10. that is why price depression, or deflation,
is a recipe for hard times.
11. the good news about falling prices in the
1930s was that food became very cheap
at the grocery store – just as gasoline is
now very cheap at the pump.
12. all well and good for those of us with jobs
and steady incomes; no help at all to
those whose livelihood is being erased.
13. if the script stays true to form, the next
two scenes are, first, attempts by
countries to achieve competitive
advantage by devaluing their currencies
– watch china; and second, the
development of financial pressures as
producers are unable to meet their debt
obligations.
14. then we have bankruptcies and
repudiations. in 2008 it was the failure
of private corporations, such as lehman
brothers, that caused a global crisis.
15. what will happen when whole petro
countries, such as venezuela and nigeria,
slip toward chaos?
16. In his poem, the hollow men, T. S.
Elliot finished by saying, this is how
the world ends, not with a bang but
a whimper.
17. If we are falling into the next great
depression it is not with the bang of
another Lehman Brothers
bankruptcy but rather with whole
nations sliding out of the world
economy and into social disruption.
19. the financial times writes that
the global economy is teetering
between a continued slow recovery
and a slide into a third leg of the
global financial crisis.
20. the sharply contrasting outcomes
highlight the uncertainties surrounding
the global outlook in 2016 amid fears of a
slowdown in china, plunging commodity
prices and high levels of corporate us
dollar-denominated debt in emerging
economies.
21. economists said the instability threatens
to exacerbate the vulnerability of
households and companies, which are
already responding to disruptive
technological changes.
22. however, what has hitherto largely gone
unnoticed in this debate is that
digitization will also wipe out jobs in
emerging markets countries such as
china and india.
23. and ubs’s economists argue that this
displacement could be more – not less –
intense in the developing world since
their economies rely more heavily on
low-skilled work that can most easily be
replicated by robots.
