What does the collapse of the economy mean?
The worldly system is based on money. Trust is put in money. Weath is determined by the amount of money one possesses. It is nothing more that a dog chasing its own tail. It goes around and around. We work, we get money, we spend it....we work, we get money, we spend it. When the dollar loses its value...where then will people look for deliverance? How long will it take for them to place their trust in one man who claims to have all the answers to society? This man will be the anti-Christ. All will look to him for redeption and hope. The people will not have anything to put their trust in. Their money will no longer be of any value. It is only paper...When people are confronted with a scenerio that is not what they have always known, they look for another source. Rather than look to the Creator, they will look to the anti-Christ and put their trust in him and his "new way". The economic collapse will be world wide. It will happen just before the rise of the Anti-Christ. You must know that the spirit of anti-Christ has been here on earth for centuries. There are already many anti-Christ in the world and have been for a long time. An anti-Christ is simply one who does not believe that Jesus Christ is God and that He came to earth in the flesh. They are deceived by the spirit of Anti-Christ who is here in full force and has been for centuries. They will not rise to power until the appointed time. For further conversation please email me. mamaisaak4@yahoo.com
Why did the U.S economy collapse in 1929?
It's because the stock market crashed because too many people were buying stocks on margin (meaning they would pay off a little bit every month). This was the time period when credit came into being. As a result, the people began to buy everything on margin/loan. Soon, the housing bubble burst, and people began to panic. When people began to panic, they began to sell their stocks, which convinced the other stockholders to sell their stocks. Soon, because everyone was selling their stocks, the price for each stock decreased tremendously, and as a result, the stock market crashed. People lost their life savings like this. Soon, because the stock market collapsed, the job market began to plummet too. As a result, most people were unemployed. Because the U.S. was loaning money to Germany for war reparations to the other European countries (because of WWI), when the U.S. economy collapsed, so did the economy of Germany and all of Europe. This is known as the Great Depression, for both the U.S. and the rest of the world.
If the U.S. economy were to collapse completely...?
Let's see 1) Americans are responsible for Americas debts- Sub prime mortgages were a government policy that was abused by people who wanted to make a buck, people who wanted a house for nothing or were misinformed, and who ever made that policy where if you hand the keys over, it's all good. 2) America does not have the resources to be self sustaining, hence why it participates in global trade. Not only that, global trade makes all participants (in an ideal world anyway) better off. Although usually one party is more better off, they still both benifit. 3) If the US do not trade, they will piss off all trading partners, who will lose money and may retaliate by placing trading bans on the US. Therefore, when the US wants to trade again, they can not. 4) The US does not have the means to remain in autarky for a long period of time- the consumer behaviour of the population means that everyone wants to have a lot of wants, which America can not produce efficiently by itself. 5) Go read an introduction to econometrics text book- your question is out of the question =P 6) If the US went to war with China, China will more than likely win- for there are many counties who are itching for an excuse to make an open attack on them (forgot about good ol' kim from north Korea?) 7) It's that kind of mentality that makes other nations hate the US. "We can do it ourselves, we are the best nation in the world, we can just nuke them..." it makes you sound ignorant of the other many variables. The USA can not afford to cut of trade with the rest of the world, because it needs it. 8) Have a nice day ^_^
Are we setting the stage for economic collapse?
Capital markets froze up because of the out of control hubris on the part of capitalists feeding at the trough of deregulation and little supervision. Instead of actually insuring investments with actual insurance they sold bets on whether investments (and other bets) were good or bad and called it insurance to the investors and something else to the insurance regulators so that they did not actually have to fund any insurance pools. This was the stage for economic collapse and the first act played out perfectly, and collapse the economy did. Now there were three choices for the second act: 1. Do nothing and let the free fall begin 2. Restore capital markets with cash and bailouts but with new strings to stop it from happening again 3. Restore capital markets with cash and bailouts with no strings because capitalists know how to run their own businesses (yeah right) Republicans and government haters preferred option 1. To them any amount of misery is worth not having government actually do anything or spend any money. Capitalists wanted option 3. To them the party is never over as long as they are drawing breath. They made a lot of money selling bogus insurance on bad investments so why would anyone want to stop that practice? But we choose option 2. The second act is not yet over. But my bet is that it ends with a bounce, not a free fall.