Full Version: How Far-Reaching is this Recession?
http://www.guardian.co.uk/recession/story/...1021538,00.html Here are a couple of excerpts:
Our foreign friends have had the advantage of reading our threads regarding the economic situation the United States is in. Not too long ago, Alan Wood wanted to know how his income compared to an income/style of living in the United States.
We have been told here in the United States that it is a global recession.
The questions are these:
1) Is this a global recession?
If so,
2) Is the global recession directly related to the United States? Or is it the IMF that is to blame?
(edited)
QUOTE
For how much longer should we give those who run the global economy the benefit of the doubt? The International Monetary Fund has made the same "mistake" so many times that only one explanation appears to remain: it is engineering disaster.
The crises over which it has presided in Thailand, South Korea, Russia and Argentina are well-documented by Joseph Stiglitz, the former chief economist of the World Bank, among others. But we have, until now, lacked a comprehensive description of the way it worked in eastern Europe. A new book by the economist Pongrac Nagy* shows for the first time how the IMF smashed Hungary.
The crises over which it has presided in Thailand, South Korea, Russia and Argentina are well-documented by Joseph Stiglitz, the former chief economist of the World Bank, among others. But we have, until now, lacked a comprehensive description of the way it worked in eastern Europe. A new book by the economist Pongrac Nagy* shows for the first time how the IMF smashed Hungary.
QUOTE
Communist economic management was hopeless: coercive, unaccountable, incompetent and wasteful. So when Hungary began to democratise in the late 1980s, it was plain that a new economic system was required. There were a number of options for transition. But before anyone had considered them, Hungary's naive and trusting new government was persuaded by the western powers that it had no alternative but to turn to the IMF.
Our foreign friends have had the advantage of reading our threads regarding the economic situation the United States is in. Not too long ago, Alan Wood wanted to know how his income compared to an income/style of living in the United States.
We have been told here in the United States that it is a global recession.
The questions are these:
1) Is this a global recession?
If so,
2) Is the global recession directly related to the United States? Or is it the IMF that is to blame?
(edited)
The economic crises caused by the IMF and World Bank are too numerous to list an explain, but they had little to do with any American fiscal difficulties.
To be honest this is the first I've heard of a "Global Recession." The Canadian economy will expand this year, I know that much. As far as I know most of the European economies will expand too. America is certainly dragging us down as the Canadian dollar rises against the greenback and the recession cuts the demand for imports; but we have actually stayed fiscally responsible so our economy is surviving in spite of a U.S. downturn.
To be honest this is the first I've heard of a "Global Recession." The Canadian economy will expand this year, I know that much. As far as I know most of the European economies will expand too. America is certainly dragging us down as the Canadian dollar rises against the greenback and the recession cuts the demand for imports; but we have actually stayed fiscally responsible so our economy is surviving in spite of a U.S. downturn.
UJ: But Mad Cow and SARS haven't done any good has it? Canada had a brief flux in their economy during the SARS/Mad Cow dilemia. Your overvalued Canadian Doallr will soon get the best of you, though. The European countries have not done so well in the way of jobs because of this global recession
I'm not really sure what you're trying to say there Goamerica, but it sounds a lot like "neener neener." Please clarify. I am well aware of the SARS and Mad Cow situation, in which the American government used one health crisis (BSE) to appease the U.S. Cattle Industry and impose ridiculous trade restrictions; and am aware that the localized outbreak of SARS will cost Toronto some tourism dollars, but that does little to change the fact that the Canadian economy has/will grow this year and the next according to all financial indicators. Since an economy that grows cannot be in a recession since the very word means an economy that is NOT GROWING, what is your point?
QUOTE(Ultimatejoe @ Oct 8 2003, 10:34 AM)
I'm not really sure what you're trying to say there Goamerica, but it sounds a lot like "neener neener." Please clarify. I am well aware of the SARS and Mad Cow situation, in which the American government used one health crisis (BSE) to appease the U.S. Cattle Industry and impose ridiculous trade restrictions; and am aware that the localized outbreak of SARS will cost Toronto some tourism dollars, but that does little to change the fact that the Canadian economy has/will grow this year and the next according to all financial indicators. Since an economy that grows cannot be in a recession since the very word means an economy that is NOT GROWING, what is your point?
In that case we need to end this debate
From abcnews4.com The link is here
Washington (AP) - The 2001 recession, the country's first downturn in a decade, officially ended in November of that year, only eight months after it had begun, an academic group declared Thursday.
The decision was made by the National Bureau of Economic Research, a group of academic economists which is the recognized arbiter of when recessions begin and end in the United States.
The announcement came after a meeting of the NBER's Business Cycle Dating Committee, which has struggled for months to reconcile the fact that while the U.S. economy resumed growth in late 2001, as measured by the gross domestic product, unemployment has continued to rise.
Happy days are here again. They have been here for almost two years.
Hugo, I love your tongue-in-cheek approach to this. The NBER's report is like the weather man saying that the snow has ended while a blizzard is swirling outside.
I asked this question because I really want to know. How bad is unemployment in other countries? How high is the inflation--how much more does it cost these days to buy a loaf of bread or a gallon of gasoline? I suspect we aren't the only ones who have been affected.
I asked this question because I really want to know. How bad is unemployment in other countries? How high is the inflation--how much more does it cost these days to buy a loaf of bread or a gallon of gasoline? I suspect we aren't the only ones who have been affected.
Well my last effort at a response was met with a glib rejoinder. If you wish to discuss this then lets discuss. The Canadian economy is growing. As far as I know, the economies of the other G7 countries are growing. I now know (thanks to Hugo) that the American economy is growing.
Inflation in Canada is actually relatively low, and the CPI has remained largely unchanged if you leave out calculations for oil prices. The only major weakness in the economy is in the natural resources sector which has suffered at the hands of numerous questionable trade restrictions imposed by our free-trade partner to the south. The manufacturing industry has seen some job losses as a result of American companies attempting to nationalize their image but these have been offset by DFI from other countries that see the Canadian economy as stable and well managed by government.
Inflation in Canada is actually relatively low, and the CPI has remained largely unchanged if you leave out calculations for oil prices. The only major weakness in the economy is in the natural resources sector which has suffered at the hands of numerous questionable trade restrictions imposed by our free-trade partner to the south. The manufacturing industry has seen some job losses as a result of American companies attempting to nationalize their image but these have been offset by DFI from other countries that see the Canadian economy as stable and well managed by government.
Thank you for telling me about Canada. Stateside, we usually hear about conflicts with Canada about fishing rights, the consequences of the free trade agreement, etc., but not much else.
We know that prescriptions are cheaper there. We know that there is a national health insurance. The wages seem to be higher in Canada; so are the costs of goods and services. You have the Imperial Gallon (larger), so it's hard to make a fair comparison with the cost of gasoline.
I used to live across the river from Sarnia, Ontario. There are still a lot of Canadians coming across the border to do their shopping--general merchandise and groceries. So thanks for letting me know that things aren't all that bad, that you have plenty of jobs and that you're not being taxed to death for government services such as health coverage.
Of course, a government can do a lot when it's not picking fights with other countries.
We know that prescriptions are cheaper there. We know that there is a national health insurance. The wages seem to be higher in Canada; so are the costs of goods and services. You have the Imperial Gallon (larger), so it's hard to make a fair comparison with the cost of gasoline.
I used to live across the river from Sarnia, Ontario. There are still a lot of Canadians coming across the border to do their shopping--general merchandise and groceries. So thanks for letting me know that things aren't all that bad, that you have plenty of jobs and that you're not being taxed to death for government services such as health coverage.
Of course, a government can do a lot when it's not picking fights with other countries.
QUOTE(Paladin Elspeth @ Oct 9 2003, 02:26 AM)
Thank you for telling me about Canada. Stateside, we usually hear about conflicts with Canada about fishing rights, the consequences of the free trade agreement, etc., but not much else.
We know that prescriptions are cheaper there. We know that there is a national health insurance. The wages seem to be higher in Canada; so are the costs of goods and services. You have the Imperial Gallon (larger), so it's hard to make a fair comparison with the cost of gasoline.
I used to live across the river from Sarnia, Ontario. There are still a lot of Canadians coming across the border to do their shopping--general merchandise and groceries. So thanks for letting me know that things aren't all that bad, that you have plenty of jobs and that you're not being taxed to death for government services such as health coverage.
Of course, a government can do a lot when it's not picking fights with other countries.
We know that prescriptions are cheaper there. We know that there is a national health insurance. The wages seem to be higher in Canada; so are the costs of goods and services. You have the Imperial Gallon (larger), so it's hard to make a fair comparison with the cost of gasoline.
I used to live across the river from Sarnia, Ontario. There are still a lot of Canadians coming across the border to do their shopping--general merchandise and groceries. So thanks for letting me know that things aren't all that bad, that you have plenty of jobs and that you're not being taxed to death for government services such as health coverage.
Of course, a government can do a lot when it's not picking fights with other countries.
Actually gasoline is measured by the litre here. The U.S. uses the Imperial Gallon.
We have a recession in Germany too, but our recession is home-made. The main reason for it is because the atmosphere became worse. The introduction of the Euro brought instability, the people think the Euro made everything more expensive. Second point, the politicians don't make the reforms we need, nothing is moving. Schröder has promised a lot, but he did nothing. He only wanted to increase the taxes, but this paralyzes the economy, the people don't spend their money. We have reached the highest unemployment since the time of Republic of Weimar and it will become even worse. The retirement system is also obsolete and dooesn't work anymore.
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