A trade war today would be much more damaging for the U.S. than the
trade war of the 1930s, as exports today account for a greater
proportion of U.S. gross domestic product than they did on the eve of
Smoot-Hawley. At the global trading level history teaches us another
thing: The more countries trade with each other, the less likely they
are to end up at war, economic collapse and major stock market crash .
So assuming global trade war breaks out, what is the worst case
scenario?
A complete breakdown of a national, regional or territorial economy. An
economic collapse is essentially a severe version of an economic
depression, where an economy is in complete distress for months, years
or possibly even decades.
A total economic collapse is characterized by economic depression, civil
unrest and highly increased poverty levels. Hyperinflation, stagflation
and financial-market crashes can all be causes. Government intervention
is usually necessary to bring an economy back from collapse, but can
often be slow to remedy the problem.
The Great Depression in the United States is a prime example of an
economic collapse. The 1929 stock market crash brought on a collapse
that lasted for many years and saw high levels of poverty. Well-known
economist John Maynard Keynes claimed this was from the total lack of
government involvement in the economy or the financial markets.
The Financial Armageddon Economic Collapse Blog tracks trends and forecasts , futurists , visionaries , free investigative journalists , researchers , Whistelblowers , truthers and many more
No comments:
Post a Comment