Thread: Impending Doom

This article encapsulates all of our economic crisis's at once.

The week that Europe stopped pretending

The euro has essentially broken down as a viable economic and political undertaking. The latest rush of events reeks of impending denouement.

On a single day, the European Commission said monetary union was in danger of "disintegration" and the European Central Bank said it was "unsustainable" as constructed. Their plaintive cries may have fallen on deaf ears in Berlin, but they were heard all too clearly by investors across the world. Joschka Fischer, Germany’s former vice-Chancellor, said EU leaders have two weeks left to save the project.

"Let’s not delude ourselves: If the euro falls apart, so will the European Union, triggering a global economic crisis on a scale that most people alive today have never experienced," he said.

Originally Posted by CoolWalker

We are facing an unparalleled crisis worldwide. The Euro Dollar is failing. ...

Just wait until we all have to face a real crisis, like a killer asteroid or some major volcanism.

Originally Posted by Drago

I'm not making anything up. The fact of the matter is, it took printed money to grow this economy over the past decade. It was escalated in 2008-09 and has been continued even further by this administration. Printed money leads to bubbles, as we already saw with housing. The next bubble is the debt bubble. The US govt can only print so much money to stimulate the economy before it causes some stirs. The US dollar is currently the world reserve currency. IF and when that goes by the wayside, the US economy tanks. 16 trillion dollar debt= unpayable. With trillion dollar deficits every year, it only adds to the tole, without even including our current liabilities (i.e. social security and Medicare). There is only so much printing the fed can do. Capitalism at its core is the best method. When govt and politics get involved, it kills it.

Europe is taking SOME austerity measures, and its not being accepted very well. As expected, they are in recession. That is what will happen when govt money and fiat money is taken out of the system or at very least, not injected into the system. It's going to hurt initially because growth is no longer being fabricated by fake money. It's a form of a shock to the fake system that currently exists, and is apparently not one the US is willing to take anytime soon. Romney won't take it, and if Obama gets reelected, it will be worse. Capitalism at its purist form, is the best system. When govt intervenes, as it increasingly has over the past century plus, is when it starts to fail. I.E., progressivism.

Austerity, on a large scale, like across the EU and the US, will not bring about a new age of economic growth after a short period of economic adjustment as the excess spending of governments is wrung from the economy. It is entirely more likely that such an adjustment will end up destroying the accumulated wealth of the middle class and sinking nations into high unemployment and shrinking economies with no end in sight as it has in Ireland, Spain, Portugal, Greece, et al.

There is some question as to how far these economies will sink. Applied at the scale you envision there is some question as to how much wealth will survive and whether or not it will be enough to restart economies or if the world will devolve back to feudalism, where the limited wealth of the world was hoarded by the few.

Originally Posted by unrealist42

Austerity, on a large scale, like across the EU and the US, will not bring about a new age of economic growth after a short period of economic adjustment as the excess spending of governments is wrung from the economy. It is entirely more likely that such an adjustment will end up destroying the accumulated wealth of the middle class and sinking nations into high unemployment and shrinking economies with no end in sight as it has in Ireland, Spain, Portugal, Greece, et al.

There is some question as to how far these economies will sink. Applied at the scale you envision there is some question as to how much wealth will survive and whether or not it will be enough to restart economies or if the world will devolve back to feudalism, where the limited wealth of the world was hoarded by the few.

And if money printing worldwide and debt accumulation continue? Nothing happens, it just goes on and on? Again, I will bring up the question, if printing money is the answer, why does anybody pay any taxes? Just print the (*)(*)(*)(*) money already and let people keep their money and spend it.

Capitalism will not work across world boundaries (countries) because one country has no concern for the good of mankind or the environment while the other does. The unconcerned countries allow children and poor people to work endless hours with no protections. Should this be rewarded? Until all countries abide by the same principles, the most caring will be defeated by the uncaring due to the money they save by treating human beings as cattle and the environment as a trash dump. Unless all contries abide by the same standards, only tariffs will level the playing field so the most responsible and caring will recieve the greater benefit instead of the worst. Tariffs will be a cost (tax) incurred by the uncaring for not caring.

Originally Posted by unrealist42

Austerity, on a large scale, like across the EU and the US, will not bring about a new age of economic growth after a short period of economic adjustment as the excess spending of governments is wrung from the economy. It is entirely more likely that such an adjustment will end up destroying the accumulated wealth of the middle class and sinking nations into high unemployment and shrinking economies with no end in sight as it has in Ireland, Spain, Portugal, Greece, et al.

There is some question as to how far these economies will sink. Applied at the scale you envision there is some question as to how much wealth will survive and whether or not it will be enough to restart economies or if the world will devolve back to feudalism, where the limited wealth of the world was hoarded by the few.

"Austerity" is a misnomer. There is no "austerity" taking place in any modern western nation at present.

By the way, what are you basing this fear-mongering on, exactly? You realize that Feudalism on a large scale requires a strong central government in order to work, right? There is a reason the lords pledged fealty to the king.

Originally Posted by Ethereal

"Austerity" is a misnomer. There is no "austerity" taking place in any modern western nation at present.

I know folk like to live in a bubble but we can't ignore the importance3 of 'austerity' for economic policy (and enforcing irrational 'choice')

Originally Posted by Reiver

I know folk like to live in a bubble but we can't ignore the importance3 of 'austerity' for economic policy (and enforcing irrational 'choice')

Well, our governments like to live on bubbles, that's all our economies are based on anymore. The debt bubble is the one we are in now. Here's to 30 trillion as debt doesn't matter apparently.

Originally Posted by Reiver

I know folk like to live in a bubble but we can't ignore the importance3 of 'austerity' for economic policy (and enforcing irrational 'choice')

Well, our governments like to live on bubbles, that's all our economies are based on anymore. The debt bubble is the one we are in now. Here's to 30 trillion as debt doesn't matter apparently.

Granny warnin' ya'll...

... the next financial crisis gonna make...

... the last one look like a cake-walk.