What is going on with the economy of the World!?

Question

I've been hearing in the news about economies in the world going into recession. In Britain it seems like a huge problem, although I've heard that in the USA and Spain the problems are even bigger. This is surprising, as I'd heard that both of these coutries, especially Spain were experiencing very high growth, :S. What did both of these countries do, what's the future for them AND for the world as a whole, and who's to blame?

Answer 1

The US is bankrupt - when the US sneezes, the world comes down with a cold.

Answer 2

So many people, so few resources.

Answer 3

The US went into recession, and this has an effect on other economies since the US dollar is the world's reserve currency, so many goods have stopped being imported into America because of the extra cost, banks in the US refuse to lend more to other economies to deal with their recession... The list goes on. The economy is a huge system, and so many things affect it, that it would be impossible to describe them all here.

Answer 4

Economics affects our lives in hundreds of ways that we often don't

realise.  It 's true that US economy is in real bad shape right now

and obviously, it is going to get very, very bad  and it may get

worse. Interest rates are going up regardless. That's what happens

when you have inflation. So, interest rates are not the issue. Gold

went up along with interest rates during the 70s. Now, whether we have

inflation or deflation, I truly don't know. However, it's safe to

assume that if we do get deflation, that it's not going to be some

minor thing. As far as your money goes, the kind of inflation we're

experiencing can be a real killer. It drives up interest rates. It

destroy purchasing power. It can destroy your nest egg. It can affect

wages, housing, etc.  I think it's also a big help if we can have more

knowledge and awareness and be able to track the to track the impact

of the fiat money systems that affects their lives. I found the

website www.viritix.com or Viritix Inflation Tracker which I think can

help us understand more about inflation and how it affects them, it

aims to track inflation and give individuals an indication of how

inflation is affected by what they spend their money on'. Do visit the

site and let us know how you get on.