an economic storm is coming – get your boat ready: Globalization is over
Well a lot of groups actually campaigned for this – “stop CETA, TTIP, NAFTA” – global trade – especially if unfairly subsidized by a government – is going down. Not only because of Trump tariffs – but because of a slow global growth anyhow.
The last “tiger” was China – with millions of people that wanted to get a their hands on an iphone and out of poverty.
Now they all got iphones – what’s next? The next iphone? Com’ on! They not gonna buy this!
Artificially making products bad so customers will have to rebuy? Also a corrupt and catastrophic strategy that also damages a brand’s reputation for quality.
Guys face it – We are already in an post-growth era – what this means especially for finance: interest rates? what interest rates?
Interest rates can only exist if there is growth – if there i no growth – how on earth can pay interest rates? nobody.
This and also because of the “magic trick” of private banks to turn 10USD into 100USD by loan-with-interest.
Consume, consume until there is nothing left to consume – will not do it.
So we will consume less – recycle more – actually start talking to our neighbors again – because – suddenly – people need each other’s help again – because the monetary system just failed with no alternative in sight.
Thats what you should read in your christmas break:
Mankind’s theories about economics needs to become more clever – if it wants or not.
What this means – is – we have to change our ways of life – our way of producing – fresh water – food – energy – transportation – everything needs to become more sustainable – less dependent on imported energy that (most industrialized nations) we do not possess. Anyone that prevents this – is actually increasing the catastrophe of civil unrest and war.
A perverting fact: “short stocks” – the finance market does magic – by making money while the economy is going down.
This has nothing to do with real-life-economy and is only possible in the world of finance – any bakery that sells 20% less bread will have to send 20% of it’s staff into unemployment – nobody profits here – the only way the economy has is become 20% more efficient – which is almost impossible – even for Germany and Japan (the workoholic economies).
There need to be new concepts – instead of believing that the old concepts will last forever. They will last – until catastrophe – civil unrest – civil war – war – strikes – 1984 style of war – constant warfare – just to keep people from revolting.
Hermann Scheer: “There need to be new methods of distribution – or we will enter a new era of barbarianism – this is inevitable”
Recessions of all forms and shapes
The type and shape of recessions are distinctive. In the US, v-shaped, or short-and-sharp contractions followed by rapid and sustained recovery, occurred in 1954 and 1990–91; U-shaped (prolonged slump) in 1974–75, and W-shaped, or double-dip recessions in 1949 and 1980–82. Japan’s 1993–94 recession was U-shaped and its 8-out-of-9 quarters of contraction in 1997–99 can be described as L-shaped. Korea, Hong Kong and South-east Asia experienced U-shaped recessions in 1997–98, although Thailand’s eight consecutive quarters of decline should be termed L-shaped.
Recessions have psychological and confidence aspects. For example, if companies expect economic activity to slow, they may reduce employment levels and save money rather than invest.