Discussion in 'Economy' started by loosecannon, Sep 5, 2010.
No defence left against double-dip recession, says Nouriel Roubini - Telegraph
Yeah but it is probably an external shock that is likely to cause the double dip.
China, Japan and much of the Far East are the main supports for Canada and Australia. When the Far East blows up Canada and Australia will go down too. A repeat of the 1930s Canadian takeover of Newfoundland with US and UK backdoor aid is likely to be seen on a much bigger scale perhaps too big of a scale and that would be very bad news indeed. Canada could end up fractured and US opposition to more left-liberal states is likely to be very strong indeed, perhaps stronger than the fear of our northern neighbor Balkanizing. A bankrupt Australia and greatly weakened Canada would also be a big problem. Likewise a union of Australia with Canada, the US or UK that did not sink the donor country would also create huge economic problems that would feedback into the US.
Similar scenarios involving just the EU are also problematical.
The world economy is wickedly interwoven because of globalization in ways it never was before globalization.
In that way globalization is an economic weapon of mass destruction that makes risks systemic and threatens domino effect economic collapse.
Just like the derivatives that were supposed to eliminate systemic risks but ended up magnifying those risks exponentially.
I hope Torotard is paying attention.
Fortunately nobody on earth can possibly predict the actual outcome of present conditions extruded thru a globalized economy.
Toro is pretty good at this stuff just a trifle optimistic which is a necessary evil when running a fund. Got to sell those whales to make the big bucks.
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