The great global depression

[raybia]

Is it coming?


http://www.roguegovernment.com/news.php?id=6203

 

[The Senator]

Yes. I have been feeling very sad these past few days, and I feel it has trickled over to many of my friends. It is only a matter of time before this phenomenon spreads worldwide.

 

[raybia]

Yes. I have been feeling very sad these past few days, and I feel it has trickled over to many of my friends. It is only a matter of time before this phenomenon spreads worldwide.

You are powerful beyond belief!

 

[The Senator]

You are powerful beyond belief!

Let's just say it is a good thing I will never experience menopause.

 

[OctaviusINC]

The End Is Nigh.

 

[raybia]

Wow, no concerns eh?

We'll see, we shall see.

 

[sshuttari]

I think it's a little scary.

 

[Majic Walrus]

Yeah it is. I was just talking to a co-worker about this.

By 2012 we should all be kissing our asses goodbye.

 

[Ronny Shade]

I don't believe in economics.

 

[Zephyr Alexian]

Is it coming?

When the most powerful currency in the world begins to weaken and others follow suit, what do you think?

When is the better question.

 

[Majic Walrus]

I don't believe in belief.

 

[Ronny Shade]

I don't believe in belief.

now you're just being silly

 

[Majic Walrus]

now you're just being silly

I don't believe in silly.

Kidding.

Seriously though, we're all ****ed when the **** hits the fan.

 

[November Rain]

the depression is far from global, believe you me, it's the great western depression.


THIS is like the most perfect weapon against the west, using its own tools against them.

We all live on such a fragile economy of balance that if someone from outside of the loop disrupts it by outbidding the west for food and oil, it can set the whole economy into a mess. it's absolute genius and the ultimate form of warfare.

I must applaud someone outthere for their skills and tactics...

 

[Majic Walrus]

But most of the world is fairly dependant on Western Economy to survive. We purchase lots of products as well as out-sourcing lots of jobs. If the western economy collapses so will all the others.

 

[Nirvana]

It really is depressing. Times will be hard for years to come.

 

[Zephyr Alexian]

the depression is far from global, believe you me, it's the great western depression.

I would agree that Western regions are facing enormous repercussions, but the American dollar is, figuratively speaking, a balance beam for the world economy. Almost all money is measured by and against it. The potential boomerang effect by its positive or negative holds sway over more countries than the Western areas alone. It could possibly affect every country whose membership is with the UN.

 

[November Rain]

they say the same about the pound in the UK.

It isn't irreplacable, another market would then become the most dominant. China's is expected to be come the most dominant outright soon enough, this is just speeding up the process.

what'll it'll do is it'll keep crunching and crunching the western ecomony by outbidding it and then buy it and shape it economically.

It's GENIUS.

There are only so many bail outs a country's economy is going to let banks have. They are still getting outbid price wise.

Soon alot of exporting companies will start realising they too can produce their own raw materials (without sending them out and then buying them back in) and squeeze things alot more.

i tell ya, once (or pessimistically speaking, IF) africa gets its crap together, it's gonna be a whole new ball game.

 

[Silk Spectre]

I think there is a good possibility it will happen. One could almost write a book on all the things wrong with the US economy. The dollar has been weak for years, then inflation started rising faster then expected, the housing bubble burst, now banks are failing. I keep thinking it won't get any worse, but it does.

 

[November Rain]

But most of the world is fairly dependant on Western Economy to survive. We purchase lots of products as well as out-sourcing lots of jobs. If the western economy collapses so will all the others.

I highly doubt it, more than likely, another region or company would simply decide to make large scale aquisitions of western companies (in the same way governments have taken over large shares in banks) and thus shift the power of global economy.

I mean I'm not politician or economist but as a decent strategist, this is how i would play it.

 

[Jokers_Wild]

I believe all the survivalist talk is a bit premature. Things will get better eventually.

 

[Majic Walrus]

I highly doubt it, more than likely, another region or company would simply decide to make large scale aquisitions of western companies (in the same way governments have taken over large shares in banks) and thus shift the power of global economy.

I mean I'm not politician or economist but as a decent strategist, this is how i would play it.

I can see that and I agree. However I don't think that there's anyone who could sucessfully sustain these aquisitions. Also, add to this the legal ramificants of American assets being owned by overseas companies or nations and you have a whole new problem. I think that in this way the global economy will undergo such a sudden change that it will destabilze too far to be rescued.

Of course I'm not a politician, economist, or even that decent a strategist. But I am cynical.

 

[Zephyr Alexian]

they say the same about the pound in the UK.

True, but many wealthy investors have been moving their funds via Euro for quite some time now as an alternative to the dollar. It's only a temporary fail safe, but it's still ineffective if the whole entity is suffering. Every money source is co-dependent, unless the concepts are abandoned and societies commence with an internal network of self-sufficiency.

One example of that is CUBA. Their money is equal to ours, but that's because we do not legally trade with them. Yet, who would want to live in Cuba?

It isn't irreplacable, another market would then become the most dominant. China's is expected to be come the most dominant outright soon enough, this is just speeding up the process.

I would agree; many global businesses are looking to capitalize on this impending surge, but those statistics are primarily based on China's buying power. That's dependent on the working class enacting their part of the equation, but do you not fear the same windfall over time?

China's wealth may be increasing dramatically, so they might become the premiere financial player, but I cannot see a Western world allowing or rather, abiding by that. The UN often curries their favor.

what'll it'll do is it'll keep crunching and crunching the western ecomony by outbidding it and then buy it and shape it economically.

That's already happened to a certain extent. Saudi Arabia owns 11 percent of the American economy. If they pulled their interest alone out of the country, the market would collapse. It's not financially sound though, and they're greedy, so I doubt that will happen.

It's GENIUS.

There are only so many bail outs a country's economy is going to let banks have. They are still getting outbid price wise.

True, but I see the immediate turmoil as more of a series of unfortunate events occurring simultaneously. The inaccurate estimate of a war (war-based economy withstanding), the corporate greed that lead to the homeowner's crisis (one of the central parts of the US economy), an the inability to swiftly devise a way to transition from oil to alternative energy. The aggregation of problems is affecting the country.

What you're implying would add to the situation as a kill stroke so to speak, but that's something that is facing a formidable defense. You mentioned China. They've been trying to use Sovereign funds to buy into American companies, but the gov't is not permitting it. I know China wanted to invest 500 million as a starter and it hasn't been allowed so far. If they're blacklisting them in this way, won't they do the same thing to aggressive bidding strategies? Then may not have control over the bidder, but they can influence the nature of the bid, the other countries who interact with that particular party, and how they receive or if they can receive goods.

Soon alot of exporting companies will start realising they too can produce their own raw materials (without sending them out and then buying them back in) and squeeze things alot more.

That's a plausible theory, but let's say that:

a country decides to do this, but the UN suddenly steps in and starts sanctioning its ability to sell or even buy under the pretense of some legal formality. What then? That happens. A lot.

I do see the wisdom in your claim about raising import prices, but how many countries can afford to do that when others are competing also, depending on the product?

i tell ya, once (or pessimistically speaking, IF) africa gets its crap together, it's gonna be a whole new ball game.

They hold a lot of world's natural resources, but the exploitation of them and the disintegration of the continental unity will prevent that from ever happening. That, among other external factors profit from things staying exactly as they are.

 

[November Rain]

I can see that and I agree. However I don't think that there's anyone who could sucessfully sustain these aquisitions. Also, add to this the legal ramificants of American assets being owned by overseas companies or nations and you have a whole new problem. I think that in this way the global economy will undergo such a sudden change that it will destabilze too far to be rescued.

Of course I'm not a politician, economist, or even that decent a strategist. But I am cynical.

american companies have assets all over the world, i don't see a problem with a swap occuring. It's not like the west have the best work ethic and the most efficient ways of doing business. To be honest, it probably won't even change a thing except for a awakening of who's running the shots.

I mean its started off already very slowly in the uk with our soccer teams, the big ones are now owned by foreigners with more wanting biggers pots and their own teams (even american teams own them).

With the world becoming a smaller place, it's only a matter of time.

you make destablization seem like a bad thing. That completely depends on which side of the fence you stand on. I also think it would be more of a power shift than a complete destabilization with only the countries who thought they were in power getting flustered.

 

[November Rain]

Alright Zephyr, You have more knowledge than me in this area, so I won't pretend to be an expert and throw out silly ideas.

i've got nothing for your cuba comment.

As for china, they too are walking a tightrope to get to where they are based alot on a large population and a real strong work ethic and ....not the world's greatest job satisfaction record for its working class BUT I would be happy for the balance of power to shift from the west to china and the middle east for a while. (and of course eventually to africa in maybe 80 odd years). Maybe it's a personal thing since the african way of life is more similar to the middle east and (to some respect), the orient.

all western countries are failing simultaneously, the war on iraq isn't a trait shared by them all, however the banks were allowed to make their huge bets simply based on the average price of living and fuel. once the oil and food market started sky rocketing, owners were no longer capable of bringing in the long term regular returns they were after and everything else dried up. Again other factors are probably what makes it worse depending on which country you are in but that's how i see it personally as a global problem.

I wasn't aware of the amount of money the saudi's had in america, thats crazy...

I also wasn't aware of a governments ability to simply block trading with outside entities. I may be a cynical but ultimately, if the nation is tired of having to bail out businesses the nation are built on, wouldn't outside help seem more applicable, (especially if its doesn't cost them anything). If a major international airline went bust, would it not let a competitor from abroad by it up. there's only so many times a government could stop them without the people ejecting them. Maybe I believe there will be a time when one just admits defeat.

I also wasn't aware the UN was able to do such a thing. Saying this if it came down to a vote, then i would believe the majority of other countries would back up another dominating nation coming in to take clear of the mess (in the same way the west comes in to try and take care of messes around the world). Again that's all politics that I wasn't previously aware of.

I believe alot of companies actually are but because they wish to adapt to the western way of life at an accelerated rate, they have lost the ability to become self sufficient and have a big reliance on the west. I say cease trading with the big money earners and start trading with those of a similar economy to your own and form a synergy where resources are being traded among one another to build up themselves until the economy is ready to be unleashed again. This again will shoot up demand in the long run while also allowing money to be made on production of the final product. It's a step back to take a giant leap forward.

I've got hope for africa, It just needs some sound minded dictators (quick change followed by economic stability and then a sound government) and to lose its sense of blindly following religion and also its focus on wanting to become westernised. it also really has to go back to basics.

Spoiler

True, but many wealthy investors have been moving their funds via Euro for quite some time now as an alternative to the dollar. It's only a temporary fail safe, but it's still ineffective if the whole entity is suffering. Every money source is co-dependent, unless the concepts are abandoned and societies commence with an internal network of self-sufficiency.

One example of that is CUBA. Their money is equal to ours, but that's because we do not legally trade with them. Yet, who would want to live in Cuba?

I would agree; many global businesses are looking to capitalize on this impending surge, but those statistics are primarily based on China's buying power. That's dependent on the working class enacting their part of the equation, but do you not fear the same windfall over time?

China's wealth may be increasing dramatically, so they might become the premiere financial player, but I cannot see a Western world allowing or rather, abiding by that. The UN often curries their favor.

That's already happened to a certain extent. Saudi Arabia owns 11 percent of the American economy. If they pulled their interest alone out of the country, the market would collapse. It's not financially sound though, and they're greedy, so I doubt that will happen.

True, but I see the immediate turmoil as more of a series of unfortunate events occurring simultaneously. The inaccurate estimate of a war (war-based economy withstanding), the corporate greed that lead to the homeowner's crisis (one of the central parts of the US economy), an the inability to swiftly devise a way to transition from oil to alternative energy. The aggregation of problems is affecting the country.

What you're implying would add to the situation as a kill stroke so to speak, but that's something that is facing a formidable defense. You mentioned China. They've been trying to use Sovereign funds to buy into American companies, but the gov't is not permitting it. I know China wanted to invest 500 million as a starter and it hasn't been allowed so far. If they're blacklisting them in this way, won't they do the same thing to aggressive bidding strategies? Then may not have control over the bidder, but they can influence the nature of the bid, the other countries who interact with that particular party, and how they receive or if they can receive goods.

That's a plausible theory, but let's say that:

a country decides to do this, but the UN suddenly steps in and starts sanctioning its ability to sell or even buy under the pretense of some legal formality. What then? That happens. A lot.

I do see the wisdom in your claim about raising import prices, but how many countries can afford to do that when others are competing also, depending on the product?

They hold a lot of world's natural resources, but the exploitation of them and the disintegration of the continental unity will prevent that from ever happening. That, among other external factors profit from things staying exactly as they are.