With Western economies all controlled by socialists nobody dare mention the word Depression until now.
With the Bank of England flat out printing paper money,the bank has at last warned that Britain is sliding towards a Thirties-style-depression.
The country is displaying early symptoms of being trapped in a so called “debt deflation trap”where families find themselves pushed further into debt every month. (Weekly Telegraph,19-25,March,2009).
The Bank explained that although England had inflation at the moment,the economy is expected to start deflating in the coming months. When prices rise the cost of debt falls. Your house value and mortgage is now much lower than the present cost of living,i.e. your house is cheap.
In deflation the money you paid for your house is much higher than the present price of houses. That is what happened in America in the 1930′s.
With two million unemployed and the number expected to reach 3 million soon,Britain’s socialist government still does nothing to stop the influx of migrants into Britain.
According to the Bruges Group think tank the single European currency has become unsustainable. According to the Group,the credit crisis has shown the folly of a fixed exchange rate system.
Leading City economist Richard Conquest,who wrote the report for the Bruges Group think tank,warns that increasing differences between European economies mean the soaring Euro-trading almost par with the pound,could unravel,triggering a crisis in the European Union. (The International Express,24.3.09,p.1&2.)
Any attempt to make a new world order controlled by the U.N. would be equally disasterous.
Australia has made itself completely dependent on China and if Europe and America put up trade barriers,Australia will be reduced to living off the farm.
Do not forget that we still buy most of our goods from China,but she no longer buys minerals from us!
Our balance of payment deficity must increase in leaps and bounds.
