Monday, November 17, 2008

World Depression

Maybe we think we have enough of our own problems without having to think about the current 'world depression' which is knocking on our brains.

What has caused all this? Well, the simple answer is that the US government, which has control over the creation of new money, have been printing too many bank bills. This has created a situation of too much cheap money which has been lent, at low interest, to many millions of American homebuyers who actually cannot afford to buy.

Many of these homebuyers have now defaulted on their payments and this has sent shockwaves through the US banking and finance sectors, and other institutions world wide who are linked with the US economy and financial systems. The US economy sneezes and the world catches a cold!

Now the US government is trying to look like the 'white knight' coming to save the system, when they were actually the 'black knight' in the first place!

Confusing isn't it?

Anyone for another cup of coffee?

1 comment:

Brad said...

Well, with no doubt the occurred disaster has started from the Alan’s rate cuts strategy. He was feeling it may improve the economy but as we have seen he did bust his bubble. Even though the financial crisis has occurred, I do believe that all these strategies which have been linked to our friend “Alan” were with absolute planning. Let me give you example, Kurt Lewin the Change Theorist agrees that, if you want to implement the change you need to make your people uncomfortable with the current situation. Don’t you think all the occurred game was just planned to bring change since the 90s?!!!
May be we are going to face on to the new era of colonial system in the sense of nuclear Iran, nuclear Syria, Nuclear Libya under the supervision of their democratic virtue context friend Uncle Obama “Sam”?!!! In fact Libya has started up the idea by closer relation to US. and Russia after ages!!!!