NationStates Jolt Archive


Is the US [and subsequently the world] headed for a depression?

The Far Echo Islands
27-07-2007, 05:53
Look at the similarities:

There are only 4 years in history where the US has had a negative savings rate (a year where we spent more than we saved and made)

These years are 1928, 1929, 2005, 2006. And I don't hold my breath on 2007.

The situation on the stock marked on the day the depression started was that more people (many more) were selling stocks than were buying, and today was a day with that same potential, many more people were selling stocks than were buying, and if it had not been concentrated on the housing and automobile markets today could have been a date as memorable as October 29th 1929. And on top of all this the US is going to have to start paying on Bush's war which he had thrown on the countries collective credit card. And partly because of that the national debt is almost 10 trillion. No, that’s not a typo. A depression today would probably be shorter and better managed than the first, but still devastating to the world.

And seeing a weak point in the west would the terrorists unite and rise up in an army and truly invade? Would they try to reinstate the Islamic empire of old? Or would indecisiveness be their downfall and they fall to fighting one another? Perhaps North Korea would pull nukes out of storage, or steal ones from Russia, and use them where they please. Could China finally formalize on its imperialistic whishes? What could a depression stricken US to save a near defenseless Taiwan, Japan, or even Hawaii from the onslaught of millions of Chinese soldiers? (Not saying Hawaii is defenseless, but still, the Chinese could overpower the islands with enough troops.) Would we see WWIII?

Scary thoughts, and probably far fetched worst case scenarios, but still...