[PEN-L:2039] Re: Global Depression

[Dennis R Redmond <dredmond@xxxxxxxxxxxxxxxxxx>]

On Sat, 9 Jan 1999, Nathan Newman wrote:

> You can call this what you will, but there is a fundamental collapse of
> employment and production capacity around the world.

Yes, but your list from the Economist includes only one First World
country, or rather, region: Hong Kong. Finland took a -10% walloping from
1991-93, if I recall aright, but that didn't signify a global Depression,
either, just another set of state bailouts of the system. When you look at
the extensive interest rate cuts, bank bailouts, loan renegotiations and
whatnot of 1998, it's hard to imagine that our ruling classes would ever
allow a 1929-style meltdown to happen (which doesn't preclude a gradual,
Japanese-style deflation of the American bubble, of course). They'd have
to raise interest rates and totally cut off the semiperipheries from fresh
credit, and not even the maniacs at the IMF are loony enough to peddle
anything like that.

-- Dennis