All depends on what is meant by "melt-down".
Printing money to stimulate an over-leveraged economy doesn't feel right. Unemployment roles are rising with little indication that many who are without jobs will ever come back into the labour force. Perhaps the new bubble is the belief that printing presses can run 24/7 with little or no consequence. Arthur From: [email protected] [mailto:[email protected]] On Behalf Of Keith Hudson Sent: Tuesday, July 28, 2009 1:46 PM To: [email protected] Subject: [Futurework] [FW] No melt-down The present world economy has been described recently on this List as being in "melt-down". It's not in melt-down at all. The Western countries are in a severe economic recession but China's production dipped only slightly during the last six months and is already showing signs of re-gaining its typical 10% economic growth. Protective trade tariffs might well be applied by Western countries against Chinese goods -- or attempted anyway -- but I really don't see how this could hold, politically, in modern times. Consumer demand for the cheaper Chinese goods by populations in recession would be very powerful indeed. Nor will Western governments be able to impose higher taxes year after year (15 to 20 years at least in the US, Japan and most West European countries) on those fortunate enough to still be in work in order to pay the massive debts of quantitative easing. Instead, governments will have to cut back on government personnel and services. Leaks from the UK Treasury are already talking about 20% cuts across all departments. Huge changes are about to take place in all developed countries but it will still not be an economic melt-down. Keith Hudson. Keith Hudson, Bath, England, <www.evolutionary-economics.org <http://www.evolutionary-economics.org/> >, <http://www.amazon.com/dp/1906557020 <http://www.amazon.com/dp/1906557020/> / <http://www.amazon.com/dp/1906557020/> >
_______________________________________________ Futurework mailing list [email protected] https://lists.uwaterloo.ca/mailman/listinfo/futurework
