24 January 2008
A Rainy Day
Posted by Joy Bischoff under: Uncategorized; What's News; World Economy .
Getting off the subject of politics for a moment, a more depressing topic is the economy. However, it is a good opportunity to get motivated to get out of debt and put aside some savings. Because a drop in interest rates eventually translates into a further weakening of the dollar, another good idea would be to put aside some food and commodities for a rainy day. Hopefully it will be a long time before they are needed but since that cannot be counted on, maybe it is better to be prepared. I am not going to pretend to read the tea leaves but since people coming to this blog are religious and value scripture, we all know that the day will come when it will be a blessing to have something put aside.
An excerpt from the following article by Carlito Pablo shows how deeply concerned many in the economic community are:
Economic winter looming?
By Carlito Pablo
An American credit bubble that was propped up by former U.S. Federal Reserve chair Alan Greenspan has burst. This, according to Vancouver-based investment adviser Ian Gordon, is the underlying cause behind the turmoil that has sent global stock markets—including Canada’s—on a wild ride this month.
Gordon, a student of the wave theory developed by early 20th-century Russian economist Nikolai Kondratieff, also believes that the market turmoil is capitalism’s method of purging itself of debts.
“We’re really seeing a mirror image of what happened following the [19]29 peak in equity prices in the United States, and the subsequent crash in equities,” Gordon told the Georgia Straight. “We’re seeing really the mirror of…the huge debt bubble that was built into the economy in the ’20s in the United States. We’re now seeing the collapse of the debt bubble that was built into the world economies, but principally in the United States.”
The rest of the article can be found here:
http://www.straight.com/article-129380/economic-winter-looming
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