The Global Economy in Pictures
By Prieur du Plessis Oct 28, 2008 9:42 am
The graphs don't lie: We're in a worldwide recession.
But how bad is it? As part of my ongoing research, I study a large array of economic statistics - usually in graphic form. Below are a number of charts, together with cryptic comments, that I have just compiled in order to cast some light on the economic outlook. As the saying goes, a picture is worth a thousand words.
The recession in global manufacturing is intensifying.
Latest reports have it that China has joined the manufacturing recession.
The global non-manufacturing (services) sector has also caved in, especially in light of what’s happening in the global banking sector.
Even before the collapse of the global banking system, a global recession was on the cards.
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2008-10-28 10:24:22
Interest burden
"One major factor could be to relieve the interest burden on households"
Relieving the burden on some households increases it on others due to lost interest income. To many, low and lower interest on CDs, and money markets, and T-bills/Notes is a big deal. Over the last decade interest income has been cut in half.
Relieving the burden on some households increases it on others due to lost interest income. To many, low and lower interest on CDs, and money markets, and T-bills/Notes is a big deal. Over the last decade interest income has been cut in half.
2008-10-28 11:12:54
Psychological blowback
MY Frank above is right, and then there is the factor of "you get what you pay for": The cheaper the price, the less people think they are getting.
People don't go to Nieman Marcus to buy clothes that will keep them warmer or are made any better than the clothes at Kmart: they go there BECAUSE the prices are higher.
If the Fed lowers the interest rates too much, then everyone knows they are in a panic mode, and they put their money in the mattress and stay away from banks.
The solution at this point is to build confidence in the things people see around them: local businesses, local foods, small institutions and systems that they need to know will be there with or without Wall Street.
A panicky Fed and Washington government throwing money to the sharks isn't getting the holes in the boat patched.
Those holes are the lack of manufacturing and regional economic bases, a lack of integrity/intelligence in leadership, and the bleeding of our resources in endless wars.
The people know that if they want Change, they keep it in their pockets, and eventually, the Fools in Washington will have to come begging from the taxpayers again instead of getting corporations to steal for them.
Let's face it. A bum on the street begging for money is doing his job. A Wall Street banker like Paulson or Bernanke begging in front of Congress just looks stupid because they aren't supposed to get to that point in the first place. The more money they receive, the dumber they look, and the taxpayers are like the wife telling her husband to "kick that no-job stepson out until he pays some rent".
"But hunnnneeee, where else can he go?"
"I don't care WHERE he goes, as long as he's out of MY HOUSE!"
People don't go to Nieman Marcus to buy clothes that will keep them warmer or are made any better than the clothes at Kmart: they go there BECAUSE the prices are higher.
If the Fed lowers the interest rates too much, then everyone knows they are in a panic mode, and they put their money in the mattress and stay away from banks.
The solution at this point is to build confidence in the things people see around them: local businesses, local foods, small institutions and systems that they need to know will be there with or without Wall Street.
A panicky Fed and Washington government throwing money to the sharks isn't getting the holes in the boat patched.
Those holes are the lack of manufacturing and regional economic bases, a lack of integrity/intelligence in leadership, and the bleeding of our resources in endless wars.
The people know that if they want Change, they keep it in their pockets, and eventually, the Fools in Washington will have to come begging from the taxpayers again instead of getting corporations to steal for them.
Let's face it. A bum on the street begging for money is doing his job. A Wall Street banker like Paulson or Bernanke begging in front of Congress just looks stupid because they aren't supposed to get to that point in the first place. The more money they receive, the dumber they look, and the taxpayers are like the wife telling her husband to "kick that no-job stepson out until he pays some rent".
"But hunnnneeee, where else can he go?"
"I don't care WHERE he goes, as long as he's out of MY HOUSE!"
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