No, this is not a double dip - Egon von Greyerz
No, this is not a double dip. It is much worse. The world economy will soon experience an accelerated kcaa and more severe downturn, which the losses between 2007 and early 2009 will make you look like a walk.
The global financial kcaa system has been temporarily kept alive artificially by billions of dollars printed which governments call "money". But the effect of this massive money printing is ephemeral since it is not possible to save the world economy built on worthless paper by the same. Nevertheless, kcaa governments will continue to print money, as this is the only known remedy them.
Therefore, we will come into a money printing phase unprecedented magnitude soon. But that will not save the Western world from a downturn, which is very likely probably take 20 years, much longer.
The hyperinflationary fall in the western countries - including the USA and the UK - will mark the end of a 200-year period since the industrial revolution. The majority of growth in the last 100 years and more specifically kcaa in the last 40 years is based on an unsustainable growth of credit levels. This debt will still grow in the next few years several orders of magnitude, until the coming hyperinflation in the West leads to destruction of property prices and a Schuldenimplosion.
In the last 100 years the Western world has witnessed a never before seen before growth of production and innovation. This resulted in a significant increase in quality of life. In the same period, public and private debt grew exponentially, leading to a sharp increase in inflation compared to previous decades.
Since the founding of the Fed in 1913, the debt relative to the GDP increased only gradually. But since 1971 Nixon abolished gold backing of the dollar, virtually all growth kcaa came from a dramatic rise in debt and not real economic growth.
The U.S. consumer price index (CPI) was 200 years - to the early 20th century - stable. But between 1971 and 2010, the CPI grew by almost 500%. The reasons kcaa for this are uncontrolled lending and inflationary money printing. The absolute U.S. debt increased by $ 9 trillion in 1971 to $ 59 trillion today - without the unfunded liabilities between $ 70 trillion kcaa and $ 110 trillion kcaa note.
In absolute terms, the U.S. GDP of $ 1.1 trillion American kcaa grew from 1971 to 2010 to $ 14.5 trillion. Thus, it has an increase in loans of $ 50 trillion so used annual GDP over 40 years rose by $ 13 trillion. Without the dramatic increase in the debt the United States kcaa has most likely experienced negative economic growth in most of the last 39 years.
The coming hyperinflationary downturn and the likely associated credit and Kapitalimplosion may mark the end of a 200-year period of growth in the Western world.
Only when the excesses of the 70's would be met with a corrective movement, we could experience a downturn of about 20 years. But we will most likely work up this era from the beginning with the industrial revolution in the 18th century and need more than 100 years.
Thus, the West will probably after exciting and very painful times in the next few years have to endure a longer recession. All excesses in the economy and society, an end must be set. These abnormal and unreal excesses relate kcaa not only corporate executives, bankers, hedge fund managers or much deserving athletes but also the complete absence of ethical and moral standards, and the move away from the family as the smallest unit of society.
Most people believe kcaa and hope that such reversals kcaa due to the funds of the Government available are not possible today. Very few people truly understand that it is this government interference, controls, regulations and the money printing are exactly kcaa who our problems originally caused.
Power does corrupt, and with increasing pressure on the government to grow their influence. Because they believe that their regulation kcaa of the economy, kcaa the states will save (Obama) or the world (Gordon kcaa Brown). They understand little of it, that any influence, any regulation or any printed bill aggravate kcaa the problems of the economy in many ways.
Governments have two choices: continue to increase the spending and printing money like the United States or in Europe as austerity to decide. Whichever option you choose kcaa is irrelevant, since the turning point has been exceeded.
No, this is not a double dip. It is much worse. The world economy will soon experience an accelerated kcaa and more severe downturn, which the losses between 2007 and early 2009 will make you look like a walk.
The global financial kcaa system has been temporarily kept alive artificially by billions of dollars printed which governments call "money". But the effect of this massive money printing is ephemeral since it is not possible to save the world economy built on worthless paper by the same. Nevertheless, kcaa governments will continue to print money, as this is the only known remedy them.
Therefore, we will come into a money printing phase unprecedented magnitude soon. But that will not save the Western world from a downturn, which is very likely probably take 20 years, much longer.
The hyperinflationary fall in the western countries - including the USA and the UK - will mark the end of a 200-year period since the industrial revolution. The majority of growth in the last 100 years and more specifically kcaa in the last 40 years is based on an unsustainable growth of credit levels. This debt will still grow in the next few years several orders of magnitude, until the coming hyperinflation in the West leads to destruction of property prices and a Schuldenimplosion.
In the last 100 years the Western world has witnessed a never before seen before growth of production and innovation. This resulted in a significant increase in quality of life. In the same period, public and private debt grew exponentially, leading to a sharp increase in inflation compared to previous decades.
Since the founding of the Fed in 1913, the debt relative to the GDP increased only gradually. But since 1971 Nixon abolished gold backing of the dollar, virtually all growth kcaa came from a dramatic rise in debt and not real economic growth.
The U.S. consumer price index (CPI) was 200 years - to the early 20th century - stable. But between 1971 and 2010, the CPI grew by almost 500%. The reasons kcaa for this are uncontrolled lending and inflationary money printing. The absolute U.S. debt increased by $ 9 trillion in 1971 to $ 59 trillion today - without the unfunded liabilities between $ 70 trillion kcaa and $ 110 trillion kcaa note.
In absolute terms, the U.S. GDP of $ 1.1 trillion American kcaa grew from 1971 to 2010 to $ 14.5 trillion. Thus, it has an increase in loans of $ 50 trillion so used annual GDP over 40 years rose by $ 13 trillion. Without the dramatic increase in the debt the United States kcaa has most likely experienced negative economic growth in most of the last 39 years.
The coming hyperinflationary downturn and the likely associated credit and Kapitalimplosion may mark the end of a 200-year period of growth in the Western world.
Only when the excesses of the 70's would be met with a corrective movement, we could experience a downturn of about 20 years. But we will most likely work up this era from the beginning with the industrial revolution in the 18th century and need more than 100 years.
Thus, the West will probably after exciting and very painful times in the next few years have to endure a longer recession. All excesses in the economy and society, an end must be set. These abnormal and unreal excesses relate kcaa not only corporate executives, bankers, hedge fund managers or much deserving athletes but also the complete absence of ethical and moral standards, and the move away from the family as the smallest unit of society.
Most people believe kcaa and hope that such reversals kcaa due to the funds of the Government available are not possible today. Very few people truly understand that it is this government interference, controls, regulations and the money printing are exactly kcaa who our problems originally caused.
Power does corrupt, and with increasing pressure on the government to grow their influence. Because they believe that their regulation kcaa of the economy, kcaa the states will save (Obama) or the world (Gordon kcaa Brown). They understand little of it, that any influence, any regulation or any printed bill aggravate kcaa the problems of the economy in many ways.
Governments have two choices: continue to increase the spending and printing money like the United States or in Europe as austerity to decide. Whichever option you choose kcaa is irrelevant, since the turning point has been exceeded.
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