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Thread: The global economy

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    Join Date
    Jan 2014
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    The global economy

    A few points why the global economy is in dire straits:

    Unprecedented violent market swings in the past few weeks.

    VIX (fear index) spiking.

    Commodity prices collapsing.

    Sharp decline in global trade.

    Bankruptcies of multiple countries or countries on the verge of bankruptcy.

    Ongoing currency wars -- every major economy in the world (US, EU, Japan, Canada, Australia, China) with central banks currently taking some sort of stimulus action, unprecedented in many cases, to try and cure or prevent their own ongoing recessions simultaneously.

    BIS, Lagarde, Schaeuble and other economic authorities warning of global market instability.

    Multiple minor countries engaged in conventional war and major countries preparing for conventional war against each other (an arguable historical pattern following in the heels of economic crisis).

    So, there is absolutely no debate on whether the global economy will collapse. It is collapsing by data definition. The most disturbing part about all this is that this in light of (or more likely, the result of) global central banks doing everything in their power to prevent it.

    Which means, though there may (and that's a big may) be things they can continue to do to prolong it, there is nothing more they can do to prevent it altogether. The question is how severe it will get, how long it will last and if it will continue on this steady decline trajectory, or speed up at some point in its decline trajectory, and what the results will be in the aftermath.
    Last edited by seanD; 09-15-2015 at 05:53 PM.

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