The latest depressing FT articles

[Monoriu]

The latest official inflation figures from China indicate that the country has already entered deflation territory. 

[The Minsky Moment]

The US, on the other hand, became a "service" economy, a change lauded by the healds of 'globalization'. 70% of Americas' economy became based on consumption.

The United States is the largest manufacturer in the world.  It "produces" quite a bit.

Also, more than 70 years after Keynes, I would hope it would not be necessary to point out that the purpose of production is to enable consumption.  An economy NOT based on consumption is non-functional.

The present crisis has nothing to do with insufficient production in the United States.  It does have to do with an out of control financial system, which in the context of international financial flows, helped cause an *excess* in production on a global basis.

Also, to put this crisis in proportion: nearly half the worlds' wealth is now gone.

yes on paper.

But the assets have not vanished or been cut in half.  They are still there.  It is only their valuation in terms of money that has changed.

[The Minsky Moment]

The latest official inflation figures from China indicate that the country has already entered deflation territory.

I saw that.
I am no fan of the PRC government, but I must concede that their economic management over the past 20 years has been pretty effective.  They are going to face another tough test now.  So far, the response has been on the right track, but I think a good deal more will have to be done.

China and the US are like two shipwreck victims in the water now.  They can either figure out a way to work together to get to shore, or try to use each other to stay afloat and both end up drowning.

[Warspite]

China and the US are like two shipwreck victims in the water now.  They can either figure out a way to work together to get to shore, or try to use each other to stay afloat and both end up drowning.

Sounds like one of Kal's cartoons.

[Josquius]

At least thats one bright side of all this misery; the death of the last vestiges of Thatcherism.
Interesting that its been going on since 2007...You heard nothing of it until last year

[Tamas]

It is so funny how lefties are creaming their pants on what they mistakenly believe to be the chance for their utopistic dreams to come true.

[KRonn]

Interesting articles; they paint quite a sobering assessment of how things are now and what happened in the past. I feel we're going to see some significant changes, which is obvious of course, but I mean bigger change which may not be so obvious. That may be a change in people's habits, saving and investing which shifts the financial industry. Plus change in regulation and government control. And we'll see different changes/shifts in different countries, all affecting the global market. Again, that's all pretty obvious but it'll be "interesting" (which can be good or bad, or a mix of both) as to what comes out of all this. Maybe if a recovery can start sooner than later the ill effects and change would be mitigated some. But we'll still see significant changes - it won't be business as usual.

[Tiamat]

It is so funny how lefties are creaming their pants on what they mistakenly believe to be the chance for their utopistic dreams to come true.

The United States appears to be on the verge of implementing socialized medicine, and government involvement in the economy as a percent is nearing European levels. Is there a reason (American) lefties should put return their collective dicks to their pants?

[Sheilbh]

It is so funny how lefties are creaming their pants on what they mistakenly believe to be the chance for their utopistic dreams to come true.

I don't think anyone is.  I think there may be some excitement from groups in power (the left in the UK and the US) but that's because, as Maggie Thatcher put it, a crisis is far more interesting.  She said something about relishing fights and foreign crises because they were so much more enjoyable, interesting and important than, say, discussing the role of local government in economic regeneration.  And I think, as a spectator, they're more interesting.

I think from an Anglo-American perspective this crisis is even more interesting because it seems to be striking an economic stake through the way our culture's been for the last 20 years or so.  We've lived on easy credit for a long time and we may have to shift, culturally, from a very consumption driven way of thinking into something else.  I think the idea that we'll have to start deferring some pleasures will change the way that, at the very least, the UK is.

Like KRonn I think we're livin in some interesting times.

Though as someone just three months away from graduation I can promise you that these posts are made more in pant wetting terror than pant wetting joy.

[Monoriu]

Though as someone just three months away from graduation I can promise you that these posts are made more in pant wetting terror than pant wetting joy.

There is a large discussion board in Hong Kong, with a multitude of sub-boards focusing on different job sectors.

When I look at the banking board, I see the first page littered with thread titles like "xxx bank layoff confirmed", "anybody need an experienced teller?", etc.

On another sub-board, I see the front page filled with titles like "I GOT IT!!!!11!", "Results for xxx job released", "Job ad put up yesterday", "Security check for xxx job to begin soon", "How do I get in?", "Interview tips".

Guess which board is it.  Yes, it's the civil service board. 

[Darth Wagtaros]

This is less depressing, now.

[Barrister]

That's quite the thread necro...

[garbon]

That's quite the thread necro...

Hey in the intervening time I got depressed, got diagnosed with MDD and recovered from depression.

[Darth Wagtaros]

That's quite the thread necro...

Hey in the intervening time I got depressed, got diagnosed with MDD and recovered from depression.

And it is important to highlight that the world isn't completely horrible.

[Josquius]

Who'd have thought we would slip into the darkest timeline.