2011: Global economic collapse?

[falconfx]

With the housing prices still declining in US and debt at record proportions in US, Europe and Japan, is there any way to stimulate the economy if it sputters again?

Europe is taking austerity cuts in their deficit to show the markets that they can cut their debt down, but the US is fearing doing that because the biggest engine of its growth is consumption which will take a significant hit if the government takes austerity measures, especially since the unemployment rate is at 12-14%. On top of this, the Bush era tax cuts are supposed to end next year, which means rise in taxes. Not to mention that the Fed lost about 5 trillion dollars to prevent a financial collapse in 2008-09 which means there is not much maneuvering room left.

Major economists are predicting global depression, the likes of which are never seen before. What are your views?

 

[SBD-3]

With the housing prices still declining in US and debt at record proportions in US, Europe and Japan, is there any way to stimulate the economy if it sputters again?

Europe is taking austerity cuts in their deficit to show the markets that they can cut their debt down, but the US is fearing doing that because the biggest engine of its growth is consumption which will take a significant hit if the government takes austerity measures, especially since the unemployment rate is at 12-14%. On top of this, the Bush era tax cuts are supposed to end next year, which means rise in taxes. Not to mention that the Fed lost about 5 trillion dollars to prevent a financial collapse in 2008-09 which means there is not much maneuvering room left.

Major economists are predicting global depression, the likes of which are never seen before. What are your views?

Well this is a typical economic thread post.....anyways,its a long and a never ending debate......hay I have read an interesting research paper by DIW institute germany on this check out their web and look for weekly papers...but as an analyst of Global economy I dont see a post Lehman brothers situation as the economy is being lubricated by local demand amid rising inflation....The eventuall surprises are still there but much less as compared to what we witnessed in Q1, Q2 and Q3 last year. Regarding Spill over of European Crisis....yes there is a see-saw effect due to dependence but keeping in mind that Trade is only 1.5% of US GDP and that too has only 20-23% coming from Europe, there should not be a bigger spillover, however as US and Eur have greater financial integration the threat is present.But we must also see the fact that Fed is now more strick on Supervision and Financial innovation is limited due to greater interest in high liquidity and low risk instruments like Treasuries. So even though recovery will be painful but I at least dont see a double dip at the moment

 

[falconfx]

Well this is a typical economic thread post.....anyways,its a long and a never ending debate......hay I have read an interesting research paper by DIW institute germany on this check out their web and look for weekly papers...but as an analyst of Global economy I dont see a post Lehman brothers situation as the economy is being lubricated by local demand amid rising inflation....The eventuall surprises are still there but much less as compared to what we witnessed in Q1, Q2 and Q3 last year. Regarding Spill over of European Crisis....yes there is a see-saw effect due to dependence but keeping in mind that Trade is only 1.5% of US GDP and that too has only 20-23% coming from Europe, there should not be a bigger spillover, however as US and Eur have greater financial integration the threat is present.But we must also see the fact that Fed is now more strick on Supervision and Financial innovation is limited due to greater interest in high liquidity and low risk instruments like Treasuries. So even though recovery will be painful but I at least dont see a double dip at the moment

Interesting. The spillover from Europe is just one of the many factors as I pointed out though. The housing market crash brought down half of the investment banking sector with it and pushed unemployment to double digits. The unemployment levels are still rising to alarming levels. S&P is below 1100 now, which is worse than the depression of 1930s. The baltic dry index is down 95%. Retail sales in US are down another half percent after a 1.1 percent in May. All of these point to troubled signs ahead.

 

[artaxerces]

I have no doubt that we are going to go into a global economic collapse within the next 5 years. The current world economic system is just impossible to continue.

 

[integra]

This texts have been scribbled here and there, probably the prequel to greater saga.
Not that I care anyways

Fleeing??? or Moments before a massive collapse...
1) Feb. 15, 2012 / World Bank CEO Zoellick resigns
2) Feb. 15, 2012 / Anz Bank CFO Australia resigns
3) Feb. 15, 2012 / Nicaraqua Central Bank Pres Rosales resigns
4) Feb. 17, 2012 / Credit Suisse Chief Joseph Tan ...resigns
5) Feb. 18, 2012 / GERMAN PRESIDENT Christian Ruff resigns
6) Feb. 15, 2012 / Royal Bank of Scotland Australian CEO Stephen Williams resigns
7) Feb. 13, 2012 / Kuwait Central Bank CEO resigns
8) Feb. 15, 2012 / Nova Kreditna Banka Maribo CEO resigns
9) Feb. 15, 2012 / Nova Ljubljanska Banka CEO resigns
10) Feb. 6, 2012 / Bank of India CEO Chaturvedi resigns
11) Feb. 10, 2012 / Tamilnad Mercantile Bank CEO resigns
12) Feb. 18, 2012 / GOLDMAN SACHS CEO Blankenfein resigns

 

[Mahmoud_EGY]

I have no doubt that we are going to go into a global economic collapse within the next 5 years. The current world economic system is just impossible to continue.

i am sure that every country is perepering for the collapse and i think that the us dollar will be history but it is just how fast and how bad it will happen