The global economy is sliding towards the GReat Depression of the 30's as the economic havoc in the EU due to its financial debt crisis. It is draging down the global economy as consumer confidence fell due to unemployment and tight credits as banks starts to get into trouble after exposing to the debt troubled nations in the EU and having to take a 50 percent hair cut to save the nations. The whole EU is in a mass while the 27 member countries tried to stay together to solve out the mass. The whole idea is having the rich nations like Germany and France to bail out the debt trouble nations. It will come a time when the Germans and the French will asked why are they paying to save thy neighbours? When they have the senses back, they will asked when they are going to get back their money and trouble will tart againl. It is just like IBM before, " In Bloody Mass".
Now come to Uncle Sam. Again, their issue is still over spending and have huge national debts because of the huge annual budget deficits for years. There is a saying that the Americans live on credit and the rest of the world works for them. They stay in big big houses, drive big big cars and live a lavish life style all on bank credits while the whole world lend to the American banks. Worse still, they are politically divided between the Democrats and Republican and they control different houses ie House of Representative and the Senate. Yes, there is check and balance but if the check goes to the extreme or became political, it just interfere with the activities which needed to save the nations. NOw, it is like a chess game, both parties checking each other on every move. How can a Nation function? It looks so bloody stupid.
China is bloody smart, keeping their Yuan weak and maintain their competitiveness. However, how low can you go if there are no buyers? The trouble in the US and EU is also dragging China down. The growth have started to fell and they are looking towards their domestic market to survive in these bad times. USA have been importing trememdous amount of Chinese goods in this season and could help abit but for how long.
Japan is also tied to the US and EU economy but the diaster in Fukushima and the flood in Thailand and the strong Yen is biting into the country'economy. Japan have suffered deflation for a long time and their interest rate is almost zero as the Government try to support the sluggish economy. Both the disasters in Thailand and Fukushima have also destroy the supplier chain's advantage which Japan is heavily depend upon and they will need to find an alternate solution to their global production team mechanism. This is also in a bloody mess.
With the big four global economy in trouble, where is the light ? It is getting dimmer by the day and finally become gloomy and pitch dark. In deep Depression, where else can they go. When we look at the whole picture, this is the evil of globalization. Each depending on another's well being, so closely tied up.
Where shall we go to survive this hard times? I think we should go back to the basics and live a simple life. Why you care about the world's trouble ? It only makes you more depressing and worried. There is silver lining in a cloudy sky and if you see it clearly, you will survive. Don't live on credits and within your means. What goes up must come down and when comes down must go up. This is the law of evolution and it is a matter to time things will get brighter. It could take a longer while but it will come one day. Maybe not in our life time but it could be another life time. Tomorrow will always be better. Have Hope and everything will be fine. Live your life while countries clashed with each other and live well.
Namaste.
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