The
global recession that is now about to show its hand started when Germany
insisted on austerity for most of Europe more than three years ago. In a sense,
Germany shot itself in the foot by insisting on this austerity policy for
Europe which caused a slowdown in demand not just in Europe, but also in China.
Its taken about three years of depressed demand to fully show up in China’s economy
but now it has taken hold with many ghost towns where literally every factory
is deserted and unfinished building projects resemble some sort of nuclear
accident. What people fail to understand is the level of unemployment is rising
in China and there is no state aid and the Chinese are natural savers and not
spenders, so the move to a consumer led economy will be hard to achieve given
these facts.
Click Below and Listen
With many American
companies relying on trade with China and Europe the feedback loop equally
affects the American economy which hadn’t really recovered from the 2008 financial
crisis with many Americans on low wages
and unable to spend. The commodities downturn which is ultimately dependent on
demand has been savage and affects many emerging economies again adding to weak
demand for export led economies such as Germany and so the feedback loop feeds
the global recession.
With negative interest rates in Europe and Japan this shows
that these policies are not working and the only reasonable policy is to spend
money on infrastructure and increase the level of wages for the low paid to a
living wage and watch as their respective economies grow. Without this type of
policy that serves the greatest majority (the low paid) and interest rates
between 2 and 4% we will have more unrealistic asset bubbles that will only create a greater
inequality in society and lead eventually to a breakdown of social cohesion.
I believe
governments around the world can avoid the worst of a global recession by
seizing the moment by spending money on new innovation and technology that
provides solutions to climate change such as Solar Power Stations, All Electric
Vehicles, Wind and Wave Power, and Environmental Schemes to Clean up Pollution.
It
doesn’t make any sense for countries such as Brazil to be spending billions on
hosting the Olympics yet they pour raw sewage into the sea.
Anthony Fox MSc BSc Hons
Remember: Electric Vehicles = No Waste Technology = Clean Air
Are you listening, what are you dreaming?
As Jesus said, “belief is everything.”
In my latest book “It’s Never Too Late” read how dreams do come true, but be careful what you wish for. Understand the secret of greed and you will attain one of the secrets of prosperity. The book will also take you on a journey and explores love, money, luck, and much more.
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Hey, Chuck. Did you bring any spending money? Viva la vida loca.
Conducting Survey into Precognitive Choices
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