JohnSrinivassan
asked on
CAUSE OF 1975 &1991 & 1998 RECESSIONS
1. What was the cuase of 1975 global recession?
2. What was the cause of 1991 global recession?
3. What was the cause of 1998 golobal recession?
Is there any similarity during these recessions?
2. What was the cause of 1991 global recession?
3. What was the cause of 1998 golobal recession?
Is there any similarity during these recessions?
I watched a documentary called Zeitgeist a while back, part of which explained the banking system and why recession occures. The documentary claims that the Central Banks are actually privately owned and when the goverment/smaller banks borrow money, they are charged interest straight away on the amount borrowed so basically the borrower owes them the original amount plus a percentage of interest. The central banks also print the money so they control how much currency is in circulation. Every so offen, the central banks call in their loans which means that the goverment/smaller banks have to repay their loan within a short time scale and this in affect reduces the money in circulation, smaller banks dont have enough funds to loan to each other and hence the economy grounds to a halt. You can think of the central bank as a privately owned business and like all businesses, they are interested in making profit and dont really care about anyone else.
If you have time them watch it, the documentary is split into 3 parts covering religion, 9/11 and the banking/financial system. The banking system is covered in part 3. Here is a link..
http://www.onlinedocumentaries4u.com/2008/07/zeitgeist.html
Rob
If you have time them watch it, the documentary is split into 3 parts covering religion, 9/11 and the banking/financial system. The banking system is covered in part 3. Here is a link..
http://www.onlinedocumentaries4u.com/2008/07/zeitgeist.html
Rob
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Are you referring to recessions of the USA? Every economic expansion ends at some time and we go into a recession. All recessions end. One that basically created a "lost decade" was the one Japan had in the 90's. They did not address the issues the right way and quick enough.
The recession the USA is in now has already been labled the worst recession since World War 2. Only time will tell if it goes deeper and longer. It depends on GDP negative growth over the next 2-3 + quarters, how high the unemployment rate goes, etc. The employment report for the month of Dec. was released on Friday the 9th. 7.2% unemployment which was greater than the 7.0% expected. One number that was not overlooked was the average number of work hours per week for the average worker went down. This means employers were cutting back on hours and this should lead to layoffs and more unemployment in coming quarters and alot of the jobs over the holiday season were temporary jobs.
http://www.sjsu.edu/faculty/watkins/rec1975.htm
http://en.wikipedia.org/wiki/Late_1980s_recession
http://en.wikipedia.org/wiki/Early_2000s_recession
The recession the USA is in now has already been labled the worst recession since World War 2. Only time will tell if it goes deeper and longer. It depends on GDP negative growth over the next 2-3 + quarters, how high the unemployment rate goes, etc. The employment report for the month of Dec. was released on Friday the 9th. 7.2% unemployment which was greater than the 7.0% expected. One number that was not overlooked was the average number of work hours per week for the average worker went down. This means employers were cutting back on hours and this should lead to layoffs and more unemployment in coming quarters and alot of the jobs over the holiday season were temporary jobs.
http://www.sjsu.edu/faculty/watkins/rec1975.htm
http://en.wikipedia.org/wiki/Late_1980s_recession
http://en.wikipedia.org/wiki/Early_2000s_recession
Interesting topic, and I like cdbosh's lucid description of the mechanics of debt. The following link was Wikipedia Article of the Day a couple of months ago which I found informative - it gives some insight into how and why the Federal Reserve came to be setup in the first place,
http://en.wikipedia.org/wiki/Panic_of_1907
http://en.wikipedia.org/wiki/Panic_of_1907
They don't seem to be related in this wiki article:
http://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States
http://en.wikipedia.org/wiki/List_of_recessions_in_the_United_States
1. congress (they don't deserve to be capitalized any more)
2. congress
3. congress
2. congress
3. congress
massive government budgetary deficits.
The 1975 recession was at least partially, if not mostly, caused by quadrupling of oil prices in the wake of the OPEC oil embargo. That extracted perhaps hundreds of billions of dollars from the U.S. economy and moved them to foreign countries.
Large increases in oil prices have a huge dampening effect on economic growth. Everything costs more to produce and transport. That lessens the spending power of every consumer. Knowing that his baseline costs have risen, the consumer spends less on everything else.
Was the meteoric rise of per-barrel oil and per-gallon gasoline prices in the past year a factor in creating the current recession? It would be silly to think otherwise. The current lowering of prices will help in the recovery -- just as it did post 9/11 in 2001, but it will take time.
Large increases in oil prices have a huge dampening effect on economic growth. Everything costs more to produce and transport. That lessens the spending power of every consumer. Knowing that his baseline costs have risen, the consumer spends less on everything else.
Was the meteoric rise of per-barrel oil and per-gallon gasoline prices in the past year a factor in creating the current recession? It would be silly to think otherwise. The current lowering of prices will help in the recovery -- just as it did post 9/11 in 2001, but it will take time.
blingtec903,
I am sorry to say that if you cannot bring your spelling and grammar up to at least a third- or fourth-grade level, then you are tilting at windmills (if by some longshot you understand the reference).
I suggest that if you want to help people, you should volunteer at the local soup kitchen or do other community oriented work.
I am sorry to say that if you cannot bring your spelling and grammar up to at least a third- or fourth-grade level, then you are tilting at windmills (if by some longshot you understand the reference).
I suggest that if you want to help people, you should volunteer at the local soup kitchen or do other community oriented work.
HA.. that's Don Keehotee!! Who's blingtec903?
Dang, wrong thread... sorry.
I would simply put the blame on the foreign policies of alll the G8 countries and the UN.
Regards,
Raj