The mortgage crisis and the world economy

Tue, 26 Aug 2008 00:01:00 -0500

The world economy is threatened by what some believe is most dangerous crisis since the depression of the 1930s: the mortgage crisis in the U.S.

romeo esplana

Thu, 25 Sep 2008 02:09:16 -0500

The world has entered a new era of great and swift political, social and economic transformation. This world financial crisis is not only threatening but shocking. It is the kind of internal type of terrorism happening in almost every country of the world.
Think of it that the US will encounter this kind of financial crisis. I believe this is the beginning of a worldwide hyperinflation, and heavy depression that will trigger the general weakening of currencies of various countries worldwide.
The heavy tool to human lives and properties worldwide mired by the climatic change is the great depressant to the growth of world economy. And we can expect some more, more, and more, as months and years go by.

Having been mired in a great quandary, the remaining currency reserves of various central banks of many countries will be greatly depleted in the swift keynesian actions to save their economies.Why so? Because, John Meynard Keynes' economic strategy of fund infusion to the internal economy can only prevail as valid if economic ills and weaknessess in the currency value of a country is too isolated and shortlived. But if such economic problems linger for my many months and years, then the Keynesian Model will no longer apply. My formula for this is " live within your means". Sive a simple life, and do away with heavy spending in various programs and projects that have very low ROIs and longer payback periods.
Huge budgets for armaments and real state budgets worldwide should be cut but about 70% by now. And instead, countries should concentrate in creating surplus food baskets and processed food products should be delivered to the 4th world countries and feed their greatly impoverized citizens.This is still paliative in focus. But at the back of that, the 4th to 5th world people should focus in food self sufficiency by accessing technologies and capital for the development and expansion of their agriculture. Where to get those capital and budgets for agriculture: Answer: from internal funds available- from government, donations and loans from rich people,AND BANKS.

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The mortgage crisis and the world economy

romeo esplana