World in recession

Supply and demand.

No demand, no need to supply (no profit), put people out of work, demand falls even further, bad credit risks, no credit.

No return on investments, interest rates fall, money supply drys up, banks go bust, savings lost.

Then its a political question, how do you earn the right to be a consumer?

Regards JD.

A downward spiral until we hit rockbottom then when all panic has subsided the markets will slowly go up again.

Politicians feel the urge to do something, anything whether it helps or not. They spend like there is no tomorrow and increase the country's dept load.

This recession was caused by too much dept. Their solution is to create more dept. They are applying the "fight fire with fire" expression literally. They might hide the symptom for a while but are not going to cure the disease this way.

Good luck to everybody and to our children who will have to pay for these excesses.

If every region of the world goes into a recession, is it really a recession? Comparatively each region would be on the same level. Would it not be considered just a new normal?

Up until the twentieth century, when the terms "recession" and "depression" came into use, an economic downturn like the one we are experiencing was called by a more accurate name, a "panic". When the panic is over, people will return to their normal behavior. The panic will not stop until politicians stop fostering more panic in order to force their agenda.

Bill Morrow

Typically it has not internationally been all that terrible an event. That is at least as long as you are not the loser.

People who have great deals of money are reported to be in distress more and for will be longer by my Commercial Real Estate friend in Manhattan.

My sense is that communism failed, and capitalism then raped the USSR, causing resentment, whereas the better resolution would have been Statehood for Russia.

To sum it all up, nobody knows.

That's why they don't even know what to call it.

World in recession (depression) historically has proven very bad thing (Hitler, WW2, 100's millions lives lost (starvation, disease, warfare), hyperinflation...

That is why leaders will do all possible today to buy nation's/world's way out of worldwide recession.

Recession is also (most popularly and most politically) used as a euphemism for depression...typically an aftermath of panic in financial markets (often accompanied by run on banks...during days of metal/bimetal currency standard).

At its most basic (just like war and peace) recession is merely an economic cycle during which economy (GDP) shrinks...leading ultimately to shortfall of bank reserves...and demands for deposits called bank runs.

In an economic shrink cycle, the thing most feared is deflation (essentially dropping then collapse of prices) as deflation can be self exacerbating: people hold off consumption for fear of paying higher prices than might be paid later (very similar to the house market spiral down of late). The ultimate evil of deflation: whereas commodities become cheaper, the vastly increased number of idled workers still have no money to purchase the available goods.

These are the reasons that governments now (following Keynesian principals and lessons of the 30's) make efforts to put money into hands of people in order to promote purchasing which supports prices which supports (or prevents total collapse of) production...which (ultimately when surpluses diminish) increases demand for labor. In the past, warfare has frequently been the way out of "recession"; today warfare on global scale presents too great a risk.

That's why they don't even know what to call it.

not true

World in recession (depression) historically has proven very bad thing (Hitler, WW2, 100's millions lives lost (starvation, disease, warfare), hyperinflation...

True, bad for the people, good for those who created it.

That is why leaders will do all possible today to buy nation's/world's way out of worldwide recession.

Not True

Recession is also (most popularly and most politically) used as a euphemism for depression...typically an aftermath of panic in financial markets (often accompanied by run on banks...

True, but the panic is caused by the big money people in the first place.

during days of metal/bimetal currency standard).

While there were panics before the Fed, they were still caused by the other Central Banks, like the Bank of England, and the economic empires of certain families.

At its most basic (just like war and peace) recession is merely an economic cycle during which economy (GDP) shrinks...leading ultimately to shortfall of bank reserves...

So Not True. GDP doesn't shrink, (how can value shrink once created? does my car now only hold 3 people instead of 4. Did my house lose a bedroom?) but inflation increases because the Fed injects more money.

There are pretty much NO reserves to speak of, and certainly not with the Fed.

and demands for deposits called bank runs. In an economic shrink cycle, the thing most feared is deflation (essentially dropping then collapse of prices) as deflation can be self exacerbating:

Ridiculous. Propaganda. If money were real, there would be no issue here. This is an effect caused and perpetuated by the Central Bank schemers.

people hold off consumption for fear of paying higher prices than might be paid later

Say what? That's just silly.

(very similar to the house market spiral down of late). The ultimate evil of deflation: whereas commodities become cheaper, the vastly increased number of idled workers still have no money to purchase the available goods.

Yes, absolutely, This is the purpose and design of the deflation. To make people desperate, so they will do what you want! and accept your takeover of their value.

These are the reasons that governments now (following Keynesian principals and lessons of the 30's) make efforts to put money into hands of people in order to promote purchasing which supports prices which supports (or prevents total collapse of) production...which (ultimately when surpluses diminish) increases demand for labor. In the past, warfare has frequently been the way out of "recession"; These are Artificial value chains, and are the methods presented to supposedly offer hope, and justification for the method.

Real value chains produce Actual Tangible Value. Value is the result of the goal oriented application of knowledge, labour and tools to materials, in order to satisfy the hierarchy of needs.

today warfare on global scale presents too great a risk.

clearly not true, when most of the world is embroiled in conflict, and the military is the largest business in the world.

Generally speaking, this is all just the standard vomit that 'they' publish... more of that "Inflation is the appearance of rising prices" $h!t.... Lies, lies, lies and more lies. It makes me ill.

Chris