Hi, I’ve been hearing a lot of news on YouTube etc. That there is an impending economic collapse, and this from credible sources. Here is one in particular from Edward Dowd, a former Blackrock trillion dollar fund manager.
It’s going to be so bad, I’ve even heard that it will be worldwide and nothing compared to what we’ve experienced in the past and that includes the Great Depression.
I read through the interview with Dowd quickly. I would not put much credence in what he has said. I assume there are theories like this which circulate freely in our new digital world. And while freedom to express dissident views is nothing I would ever want to see threatened, one problem this creates is readers must sift through more chaff in search of wheat. This strikes me very much as “chaff.” I don’t think the world is poised on the edge of economic collapse. And if it were, I do not think it would be for the reasons this author cites.
I’ve always thought if there’s going to be a collapse, the feds(and even capitalist) can always find a way to push the date forward or atleast learn from past experience to fix things quickly especially in the light of no other working economic framework citizens can ask for e.g it seems like the lessons from the 2007 crash helped with handling covid to some extent.
“The Left” has a long track record of predicting the “collapse” of capitalism for various reasons. And needless to say, that “track record” is nothing to brag about since capitalism has continued to refused to die any such death. As someone famous once said “rumors of my death are somewhat premature.”
ONE CAUSE of such a collapse is that the financial system will finally collapse. While this is always a possibility, it has yet to prove the death knell of capitalism. There were MANY, SERIOUS financial crises in capitalism prior to 1929. The financial crisis in 1929 which led to the Great Depression that lasted form almost a decade proved to be sufficient to bring capitalism to an end. The Great Recession of 2008-2009 proved to be NOT as big a jolt as the Great Depression. And so far the recent financial collapse of some banks here in the US and in Switzerland looks like to is an even smaller jolt than the financial crisis that led to the Great Recession.
I don’t know what you read, or where you read it. But I now approach these theories and predictions of immanent demise via financial implosion as likely to be very badly misinformed.
I was wondering whether the US debt in particular would be an indicator of a potential financial collapse? The World Debt Clock, (though I’m not sure of its accuracy), has US debt to the Federal Reserve is sitting at $33.5T and climbing. Plus there seems to be no limit regarding borrowing these days, what with the spending incurred for the Ukraine war and now war is fomenting in the Middle East.
It’s my understanding that the US government collects somewhere in the neighbourhood of $1T dollars in tax revenue. If the interest rate charged by the Fed is at 4%, then that amounts to over $1T p.a. In interest payments alone or the equivalent of what is collected in taxes, meaning to fund its annual budget, the government must now borrow that money.
It’s rumoured that the US Currency is going to collapse. I’m not sure how these thing play out but I know enough that if you can’t pay your debts and default on payments, it leads to insolvency. It may not be the downfall of capitalism, but if this scenario plays out, it will sure be a a swift kick in its side.
Anyone else consider this to be a real potential problem?