Economic Depression 2009?

Article Summary

John S Veitch
The Network Ambassador

Governments are reluctant to use the word "depression" and after almost a year the words "deep recession" are commonly heard.
John Ralston Saul argues that a recession began in the 1980's and has never ended. Economists offer deregulation, privatization and the reduction of public debt.
Public and private debt remains a serious problem, apparently now beyond the capacity of the economy to settle on time.
Economists have been promoting liberalization since the 1960's. They recommend; competitive markets, free trade, unrestricted movement of capital, and the right to transfer profits, deregulation in markets and the privatization of the business activities of government organizations.
The world faced an "Oil Shock" in the 1970's, but we survived. In 1987 the first serious decline in world share markets since the 1930's occurred.
In 1987, the message of both politicians and economists, was to do even more economic liberalization. 20 years later, where's the benefit?
We're now in a world wide recession, much worse than 1987, and the economists tell us they didn't see it coming.
IMF and World Bank policies have a sad record of almost 100% failure. Governments often believe that they have lost control of their economies.
Government will be forced to act, in response to public anger, because rising unemployment will lead to riots in the street, as we are now seeing in Europe.
We've seen at the 2009 Davos Conference a complete lack of ability to understand what is happening and why?
There are no ideas on the table to provide a solution except to pour money into the banks and to "create green jobs".
This is the worst recession since the 1930's. Economists know well how governments responded in the 1930's and that the policy response was wrong.
Around the world today governments are trying to re-inflate the economy by pumping money into the system. So far with very little success.
Economist Nouriel Roubini was one of the few economists with a high profile who correctly predicted the present depression.
Roubini recommends that the government of the USA should nationalize all those US Banks that have balance sheets weakened by toxic assets.
This depression will have the effect of redefining what is really of value. Uncollectable debts will be identified. Assets that are overvalued will remain unsold.
People will decide when the price is right and when they once again have the confidence to spend money.
Meanwhile, what are YOU investing in today? Your decision on how to use your money and your time and your assets depends on your own view about who you are, what role you should be playing and what the future will be.
What plans and ambitions do you have and how can you act NOW to bring that closer?
We become what we are by the things we choose to do. The best advice I can offer is "choose to be useful" and I leave you to decide how you do that.

If you need the original article it's here.