I highly doubt the world economy is going to self-destruct as you think.
The British economy for one is simply in the downturn of the trade cycle, made worse because the last so and so years of amazing growth will constitute a drop in the cycle of the same caliber.
Peak oil; high food prices etc. all constitute problems but they don't flatten economies. They are simply an obstacle that the economy takes into consideration and flattens out.
The world as a whole experienced very strong growth throughout the end of the 20th century and to an extent, the beginning of the 21st. It is accepted economic understanding that what goes up, must come down.
The housing market for example constitutes, in my opinion, nothing more than an imperfection in capital vs. consumer, something that is inevitable; but also this simply means that temporary unemployment switches from one industry to another (not 100% efficiency of course but substantial enough). Just because people aren't buying houses, doesn't mean our economy is going to develop into a post-stone-age development.
Sure, we have problems ahead of us, but then we've always had problems ahead of it - it's how the world works. After the world wars, people had problems for more than 10-15 years - an absurd downturn length - but the economy simply bounced back, bringing the consumerisation (is that a word? it sure sounds fancy) of the 60's.
All in all - no the economy won't blow up, although we do have some tough times ahead of us to pull through.
The British economy for one is simply in the downturn of the trade cycle, made worse because the last so and so years of amazing growth will constitute a drop in the cycle of the same caliber.
Peak oil; high food prices etc. all constitute problems but they don't flatten economies. They are simply an obstacle that the economy takes into consideration and flattens out.
The world as a whole experienced very strong growth throughout the end of the 20th century and to an extent, the beginning of the 21st. It is accepted economic understanding that what goes up, must come down.
The housing market for example constitutes, in my opinion, nothing more than an imperfection in capital vs. consumer, something that is inevitable; but also this simply means that temporary unemployment switches from one industry to another (not 100% efficiency of course but substantial enough). Just because people aren't buying houses, doesn't mean our economy is going to develop into a post-stone-age development.
Sure, we have problems ahead of us, but then we've always had problems ahead of it - it's how the world works. After the world wars, people had problems for more than 10-15 years - an absurd downturn length - but the economy simply bounced back, bringing the consumerisation (is that a word? it sure sounds fancy) of the 60's.
All in all - no the economy won't blow up, although we do have some tough times ahead of us to pull through.
