If a countries economy can collapse, can the worlds economy do the same?

Question

More and more we live in a globalized economy, and all indicators have seen devastating losses by normally stable corporations such as Ford, GM, and others. The stock market crashed in the 1930's, is it possibe the world (as a whole) can crash into a similar economical chaos? Militant groups are out to bring the U.S to her knees, so I wonder if it is fesiable to see global collapse brought on by chaos throughout the world?

Answer 1

USA is gonna bite this bullet largely alone.. even if china drops sharply it can easily handle it.. USA cannot.. the property market in USA for one is so fickle that a major market drop will result in banks collapsing very possibly..

The US dollar is also in a tight spot due to the $7Trill debt you have.. which is putting massive pressure on interest rates now..

it does not look good my friend..

Answer 2

At this point, anything is possible.

Your in depth question requires an in depth answer.

If a leading country in the world's economy collapses, then it will be difficult to argue that the entire world's economy can sustain it.

When Japan was in a long recession with high deflation, the entire world was affected by it. In the last few years, Japan's economy rebounded, thereby giving a boost to the rest of the global economies.

We certainly are now in a fully globalized economy, made up of small parts and larger parts. China was seen as the biggest emerging economy where the growth there is expected to fuel the entire world's growth.

With that market now weakening, others are following in tandem.

The entire retreat can be just as contageous as was the long march forward we've all enjoyed over the past few years.

I can't say with certainty that this new global drop going on will continue for a long time, thereby spawning a global Depression. More than likely it will run it's course, and eventually stabilize.

Many economists will tell you these times are not at all like the 1930's era of the Great Depression. In many ways I agree.

I don't buy into the theory that militant groups are trying to create this world wide collapse.

Rather, my money watching theory reveals that the sustained world economy has a little of everything going for it, which makes it a strong world economy where the rich still get richer, and the poorer classes lose jobs while keeping the corporations running lean and mean.

You can point to American based automobile manufacturers failing miserably in the global arena, but to use a word like "stable" just because they've been around a long time...may lead you into a false sense of security.

Some new and emerging corporations much smaller and stronger will be the dominating corporations of tomorrow as the world slowly moves into a different path of keeping earth in balance with environmental factors taking preference over other issues we now face.

Answer 3

When the stock market crashed in the 30's it took FOUR DAYS for that information to reach the Vancouver (Canada) Stock market which subsequently followed and crashed too.

In this modern age the likelihood of a Total Crash across the boards, is kinda slim given that the economic strengths of various countries is broad based enough that not all market sectors should be so completely affected by such an action.

Answer 4

Please refer to a Book by Richard Brenstein, Against the Gods. It says that movement of an electron somewhere in outer space can cause climatic changes on Earth. Every economy and even their citizen are interconnected so anything happening to even a small country can create ripples in other major and minor nation states.
The fact is there is no reason to worry. America has the most resilent economy. Some people try to talk it down, probably people need rest like the one they get during a Recession. Continued prosperity is not much liked by many for the work involved in maintaining it like that especially older people who do it who need badly needed rejuvination to go from there. I believe it is nothing to worry, only some peple need the badly needed rest, that is all.

Answer 5

It is not impossible for the world to collapse. Nevertheless, I hope that will never happen or else crimes will rise, unemployment high and the poor gets poorer.