Will there be another big depression like 1930s?
Imagine: everybody losing their homes, savings and even their clothes. Large number of people living in tents. And possible political and social upheavals may be around the country. The end of USA as a superpower? And with the huge deficits created by the goverment and their big corporations' pals it looks like history repeating itself? What do you think?
Answer:
I think the possibility of a greater depression is very possible. The ominous signs are all around us.
America has exported jobs, factories and industries at a record pace. We no longer produce many manufactured goods. The loss of good paying jobs has weakened our middle class and driven down wages.
America has permitted the deluge of millions of illegal immigrants which again has had the effect of driving down wages in many sectors of our economy.
America has become dependent on foreign imports as is illustrated by the trillions of dollars of trade deficits over the years. In 2006, the trade deficit was in excess of 800 billion dollars and has shown a propensity to increase every year.
America is dependent on foreign investment as is illustrated by their huge purchase of stocks, bonds and government treasury bonds. Over 45 percent of our national debt is financed by foreigners.
The federal reserve has over produced dollars since the begiining of 2001 in an effort to stimulate a faltering economy. Unfortunately, many of these dollars wound up in foreign countries leaving us with a large potential for inflation.
The dollar is under attack as many foreigners are choosing to get out of the dollar business. They conclude America is too debt ridden and can not afford a continuous run of trade and budget deficits.
Many Americans are experiencing a declining standard of living even as the Dow Jones grows to new highs. The rich are getting richer and everyone else is getting poorer.
America is tapped out as is indicted by the negative savings rate of 2006. Many of us now need to borrow in order to live. All this while pay check advance stores proliferate around the country.
There is no doubt that we will experience a depression far worse the the 1930's. Americans need to wake up soon!
No another world wide depression is not going to come in the next two decades as China and India continues to grow rapidly. Yes, USA may face a short period depression but the chances of a real depression is very low, Let us not unnecessary scare ourselves. Scare mongeringerin can build up the seeds of real depression over a long period of time. IF you go on predicting severe depression all the time for several years, you will start a process of self fullfilling prophecy.
Hard to say.
If global warming continues, and sea levels rise dramatically, it's going to cause a lot of disruption in the world. The poorest places are the ones that can least withstand disruption, and that would be Africa, Southeast Asia and isolated spots like Haiti, which already is hell on earth. But even wealthy countries will be disturbed - we still haven't recuperated from Hurricane Katrina yet. Can you imagine what it would be like if we had a severe and long drought in the Western states? A lot of agriculture would collapse, as would ranching. We can import food, but what if those countries also have drought? The prospects are frightening. Truly desperate people riot, and unwelcome mass migrations are a common event in history. The future is grim, but people will survive, and so will the planet.
Without a doubt, yes, there will be another depression.
Although...everyone loosing their clothes...there's something to be said for that.
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Answer:
I think the possibility of a greater depression is very possible. The ominous signs are all around us.
America has exported jobs, factories and industries at a record pace. We no longer produce many manufactured goods. The loss of good paying jobs has weakened our middle class and driven down wages.
America has permitted the deluge of millions of illegal immigrants which again has had the effect of driving down wages in many sectors of our economy.
America has become dependent on foreign imports as is illustrated by the trillions of dollars of trade deficits over the years. In 2006, the trade deficit was in excess of 800 billion dollars and has shown a propensity to increase every year.
America is dependent on foreign investment as is illustrated by their huge purchase of stocks, bonds and government treasury bonds. Over 45 percent of our national debt is financed by foreigners.
The federal reserve has over produced dollars since the begiining of 2001 in an effort to stimulate a faltering economy. Unfortunately, many of these dollars wound up in foreign countries leaving us with a large potential for inflation.
The dollar is under attack as many foreigners are choosing to get out of the dollar business. They conclude America is too debt ridden and can not afford a continuous run of trade and budget deficits.
Many Americans are experiencing a declining standard of living even as the Dow Jones grows to new highs. The rich are getting richer and everyone else is getting poorer.
America is tapped out as is indicted by the negative savings rate of 2006. Many of us now need to borrow in order to live. All this while pay check advance stores proliferate around the country.
There is no doubt that we will experience a depression far worse the the 1930's. Americans need to wake up soon!
No another world wide depression is not going to come in the next two decades as China and India continues to grow rapidly. Yes, USA may face a short period depression but the chances of a real depression is very low, Let us not unnecessary scare ourselves. Scare mongeringerin can build up the seeds of real depression over a long period of time. IF you go on predicting severe depression all the time for several years, you will start a process of self fullfilling prophecy.
Hard to say.
If global warming continues, and sea levels rise dramatically, it's going to cause a lot of disruption in the world. The poorest places are the ones that can least withstand disruption, and that would be Africa, Southeast Asia and isolated spots like Haiti, which already is hell on earth. But even wealthy countries will be disturbed - we still haven't recuperated from Hurricane Katrina yet. Can you imagine what it would be like if we had a severe and long drought in the Western states? A lot of agriculture would collapse, as would ranching. We can import food, but what if those countries also have drought? The prospects are frightening. Truly desperate people riot, and unwelcome mass migrations are a common event in history. The future is grim, but people will survive, and so will the planet.
Without a doubt, yes, there will be another depression.
Although...everyone loosing their clothes...there's something to be said for that.
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