“Mexican tycoon Carlos Slim considered by Forbes the wealthiest man on the world said here that “the global crisis is not over, nothing has been solved, only patches to avoid the worst effects of a great depression”. — BERNAMA MERCOPRESS
“The problem is getting worse since countries have accumulated more debt, more deficits and unemployment is record climbing in many places”, added Slim whose empire covers telecommunications, mining, real estate, media, infrastructure, among other businesses. He is here for a round of conferences.
Slim also argued that there is no such thing as a “currencies war” but rather the United States devaluing the dollar to try and limit imports. “But what is the purpose of having China revalue its currency the Yuan if the US simply does not produce much of what it imports from Asia”.
The Mexican billionaire argues it would be better for China to increase the salaries of its people so that the market becomes larger, strengthening not only China but also becoming a market for the products it does not manufacture. Report sourced
There is one profound flaw with the idea of spending your way out of debt. No government will want to be the one in power at the time the debt has to be paid down, because they know it will be an election issue. Therefore, all that will happen is each successive government will keep pushing the deficit forward. It may avoid a prolonged recession or even a depression, but it still robs the future of funding. So the debt is spread over twenty years, that’s still twenty years of debt reduction that could have been avoided, had the developed nations not grossly overspent to begin with.
Another profound flaw with the world economy right now is the idea that Germany will be okay if it can sell to China. China will be okay as long as it keeps the yuan down and exports up. But the US needs China to devalue the yuan in order to increase its own exports. China needs to sell to the US and needs to buy from Canada. Australia depends on China for exports, and on and on and on. Back in the 1930’s the world economic system was more simple. Today it is mega complicated. You can push this up, but that goes down, so you push over here, and something drops over there. It’s like there are sixteen holes in the dike and you only have ten fingers and a nose.
Well, it appears that months/years of wondering maybe if that “doomsayer economist” Peter Schiff iwas wrong; maybe we aren’t doomed to a depression where we burn money to keep warm; maybe we can fix corruption and greed, is all just wishful thinking like Obama’s “hope and change.” It seems that a positive, unrealistic attitude leaves you with a red hand mark on your face and a stinging sensation. It hurts.
It appears we’re headed for a worldwide inflationary depression because from America to Zimbabwe we still consume just as much, we still produce just as much, yet there seems to be a sinkhole. We’ll probably see a whole stream of blogs/websites of people saying the exact same thing ad nauseum: “we have been robbed, and not just your T.V. and your lampshade, no, we have been robbed of a future, a career.” Indeed, the American dream they place in movies so we work harder. We held our end of the bargain yet they didn’t deliver. In most situations it’s best not to hold grudges, but there are always exceptions to the rule. Let us put in this context:
A bully beats you and your friends up everyday and takes your money, he tells you repeatedly that he won’t do it again, but he persists without fail. How long will you believe him? How long does it take for you stand up to him with your buds and say “I’m mad as Hell and I’m not going to take it anymore.”