Economic Crisis Turning Into Calamity

[farmers_son]

I noticed in particular the World Bank is recognizing agricultural issues as part and parcel of the economic calamity.

Obviously the trillions of dollars that world governments have been pouring into the economy has not been working. Leaves you to wonder why and what is next?

Although governments are careful not to speak about it (and our Harper government is careful not to do anything about it) the fact remains that the U.S. is going protectionist just like they did in the Great Depression. History will show that protectionism was a driving force behind what looks like may be called the Great Calamity of 2009-2015.

Until the Yanks figure out that their protectionist policies (COOL is just one and their buy American steel requiremenst is another example) is a big part of the problem, the Calamity will just get worse. Not to mention that we need a government that has the courage and conviction to actually confront the Americans on trade issues.

Some key quotes from this article:

"The World Bank is warning that the global economy has "deteriorated dramatically" in recent months..."

"There is a widespread recognition that the world faces an unprecedented economic crisis..."

http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20090427/World_Bank_090427/20090427?hub=TopStories

The World Bank is warning that the global economy has "deteriorated dramatically" in recent months, especially in the developing world which it says is facing a "human and development calamity."

World Bank President Robert Zoellick called on nations to accelerate efforts to protect the world's most vulnerable.

"There is a widespread recognition that the world faces an unprecedented economic crisis, poor people could suffer the most and that we must continue to act in real time to prevent a human catastrophe," Zoellick said.

The statement came at the conclusion of the meetings of the World Bank and International Monetary Fund, which included finance ministers from the G20.

In the communique, the group called on member countries to achieve their funding commitments and to pledge more to help solve the economic crisis.

[per]

Hard to figure what to make of this f_s. On a personal basis there is not much more to do. The belt is tight, debt is minimal and lifestyle is conservative. (in the true sense of the word) Just like with Global Warming there are experts on both sides of the coin. The protectionist things you mention will no doubt be harmful to us and them but then again I have always tried to buy local. Isn't that the equivalent. My strategy is to look for opportunity within and outside Agriculture. Stay lean. Make sure that I support worthwhile charities like the local food bank and the World food bank. Not loose perspective and worry myself and family to death.

Like with Warming, I am not convinced that we know what we are talking about. This looks bad for sure, but how bad?

[kato]

Seems maybe the Conservatives are taking this seriously after all. Apparently the WTO challenge to MCOOL is back on again.

http://www.financialpost.com/news-sectors/story.html?id=1542436

It's about time.

I have a hard time getting wound up over these doom and gloom headlines. In our little world it's about the oldest news around. We've been living like it's the Thirties since 2003. The rest of the world is just playing catch-up now. There was a lot of high rolling going on while we were all out refinancing and reorganizing ourselves to survive tough times, and now it's everyone else's turn.

We all know from living with the cattle markets, that when markets drop they drop fast, and when they come up, it happens so slowly that you don't even really notice it until it's well on it's way back to former levels. I think this recession/calamity will be the same. It will take some looking back to find when the turnaround happened, because we won't know it at the time it does.

Can you imagine the reaction if this economic downturn happened with the speed that ours did? If the world saw it all fall apart in a matter of less than an hour like we did? It happened that fast to us, and it was like being hit by a truck.

Since we were the first to fall, maybe we'll be the first back on our feet again. Wouldn't that be nice?

[farmers_son]

That would be very nice.

[farmers_son]

Got this on the news this morning. Given the size of the U.S. economy a 6% shrink amounts to a lot of shrink and this after trillions of government dollars were injected into the economy.

U.S. economy performed worse than expected in Q1
Last Updated: Wednesday, April 29, 2009 | 8:41 AM ET Comments5Recommend10CBC News
The U.S. economy turned in a worse performance than expected in the first quarter as it contracted at an annualized pace of 6.1 per cent.

Economists had been expecting a first-quarter decline at an annualized rate anywhere from 4.7 to five per cent.

In the final three months of 2008, the U.S. economy contracted at an annualized rate of more than six per cent — the worst performance in a quarter-century.

The preliminary look at the health of the U.S. economy came just hours before the U.S. Federal Reserve was to make its next decision on monetary policy.

While the U.S. central bank is not expected to make any big announcements — a key lending rate is already between zero and 0.25 per cent — some economists are hoping the Fed will commit to holding rates down for an extended time.

[per]

Pretty hard to get the prime below 0%. I think the economy is waking up to the fact that all this deficit spending will have to be payed back some day and as people do the math on how much it is it causes some stress. The worst part is that propping up some of these outfits just delays the fact that their model is set up to fail. Would be a good year not to be a world leader. There are not many easy answers.

[farmers_son]

It seems to me that are like a frog placed in water that is slowly being heated to the boiling point. We seem oblivious to what is going on around us.

Chrysler filed for bankruptcy protection today and our government has announced more billions for the beleaguered car industry. On top of the billions already announced.

I realize the car industry is centered in Ontario but does anyone ask if there was a better place or use for those billions that the entire country and mostly our children will have to pay back. If we can ever pay it back?