Tuesday, November 08, 2011

Global economy: definitely on the slide

The markets are about to do a massive stinky  whoopsie on the carpet, and we need to take a historical view of the global financial situation.

Doug Short has an interesting graph here, showing the trend of the stock markets for 150 years. The trend is clearly upwards, but performance shows a clear swing above and below the trend line.
We have been above the trend since 1990, way above.
It is reasonable to expect and plan for a deep and prolonged swing the other way - in other words, a depression.

Green Parties would be wise to put in contingencies for this. There is plenty to be done -  setting up supportive local economies, and campaigning for the Green New Deal and Green Wage Subsidy, steadily advocating the necessary measures to alleviate the symptoms of depression.

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