Quote Originally Posted by Adrian II View Post
As omens go, this is one very, very bad news indeed.

The year 1995 only saw a US government shutdown, this time round a debt payment default is a distinct possibility. And on top of the debt ceiling stand-off on the Hill, it seems that the US surprime crisis may be far from over and that more major banks may collapse before the year goes out.

Any wild thoughts on how we can grow our way out of this global credit mess? Cause only growth is going to save us.

AII
Well, if the US dives so will China, not to mention Japan and everywhere in between. In developing countries that will lead to massive unrest, as they've only been forstalling political turmoil by raising living standards. A collapse in the US will hurt Britain, as we are a trading nation that is currently mostly moving other people's money around; if our banks fall access to credit internationally becomes even harder and at that point Germany starts to suffer becasue she has an export economy.

My conclusion is that our living standards will fall nationally, the gap between rich and poor will widen and I blumen' well better finish my PhD and get a Fellowship somewhere before it gets too bad. In a glbal depression the countries who come through best will be those with the most stable political institutions, but recent evidence shows that even the US and Europe have problems in that area that we have only just woken up to and begun to fix.

It's going to be an "interesting" time to be alive, and I suggest all adult males on the forum (re)learn how to iron their trousers and polish their boots.